Melbourne records the largest fall in fuel prices across the country

Everywhere you look, prices are going up. But the petrol pump is one place you’re saving money, latest figures show.

Melbourne motorists are saving a whopping 55 cents a litre for petrol compared to last year.

New figures show Melbourne had the largest fall in fuel prices across the country, as international oil prices stabilised following Russia’s invasion of Ukraine.

The average cost of unleaded has plummeted from a peak of $2.29 on July 10 last year to $1.74 last week.

Treasurer Jim Chalmers said it was pleasing to see petrol prices going down, as most prices for goods were going up due to inflation.

Petrol reached a peak of $2.29 for unleaded in July 2022. Picture: Luis Enrique Ascui

“We understand Australians are doing it tough with cost-of-living pressures and in a world where inflation has been persistent, it’s good to see these average prices come down a bit since they were at their highest in the middle of 2022,” Mr Chalmers said.

“Petrol prices are volatile but we want to see motorists get a fair deal, which is why the ACCC is keeping a close eye on fuel prices across the country.

“The regulator, in my view, does a good job in monitoring changes in prices but I encourage anyone with evidence of dodgy behaviour to report it.”

The average cost of unleaded dropped to $1.74 last week. Picture: Jay Town

Drivers across the country are reaping the benefits of lower petrol prices, with motorists in Brisbane saving 46 cents a litre and those in Sydney saving 44 cents a litre compared to the peaks a year ago.

Global oil prices skyrocketed in the midst of Russia’s invasion of Ukraine, which spooked the market and created supply concerns.

This prompted the Morrison government to slash the fuel excise in half for six months to ease hip-pocket pain, with the full tax reinstated in September.

Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie said the market getting used to the uncertainty of the war and oil demand normalising had put downward pressure on prices.

Mr McKenzie said a lower Australian dollar meant the price hadn’t fallen as much as it could have.

But he said it was set to remain steady over the next six months due to the affect forecast recessions in modern economies would have on demand.

Data from the Australian Bureau of Statistics shows fuel prices decreased by an average of 8 per cent nationwide in the year to May.