Petrol price pain eases in Melbourne for first time in almost two years

Petrol prices have fallen in Melbourne for the first time in almost two years. See where the cheapest spots are to fill up.

Petrol prices have fallen in Melbourne for the first time in almost two years amid rising concerns about a global recession and a drop in international demand for fuel, according to Australia’s consumer watchdog.

Melbourne’s average price of unleaded petrol is now 169.5 cents per litre, a drop from the dizzying costs the state saw throughout 2022 — where costs crept up to as much as 242c per litre in July.

The cheapest spots in Victoria to hit the bowser and fill up are the state’s south and west respectively, with servos in Frankston South, Baxter, Tarneit and Hoppers Crossing all offering the competitive price of 159.9 cents per litre.

Costs in regional Victoria have remained above average compared to the rest of the state, with drivers still expected to pay as much as 214c per litre in Elaine and between 178c to 188c per litre in the Geelong region.

The ACCC said the average retail petrol price in Melbourne dropped 4.5c to 184.8c per litre in the first three months to September.

The watchdog’s latest quarterly petrol monitoring report also found the average retail price dropped 10.3c per litre to 177.7c per litre across Australia’s five largest cities over that same period.

The drop reflects a 34 per cent fall in international refined petrol prices, while the coronavirus pandemic and Russia’s invasion of Ukraine was largely responsible for changes in crude oil prices.

“While international factors drove up prices steeply earlier this year, they contributed to price drops in the September quarter,” ACCC Deputy Chair Mick Keogh said.

The report noted the restoration of the fuel excise, which was cut for six months to deal with rising cost of living pressures, did not lead to major petrol price increases around the country.

“We have looked at the impact of the excise being restored, and, allowing for movements in international prices and the price cycles in the major cities, we found only a small number of unexpected increases in average retail petrol prices,” Mr Keogh said.

However, it was not all good news for motorists.

Average diesel prices at the bowser remained significantly above average petrol prices.

The ACCC also called on the Victorian government to implement a fuel price transparency scheme in its monitoring report, as the state remains the only jurisdiction in Australia without one.