Petrol prices to spike in new year after lows around Christmas

Queenslanders are being warned to brace for petrol to spike dramatically in the new year after a cheap run in the lead up to Christmas and new record highs in 2023.

Queenslanders are being warned to brace for petrol to spike dramatically in the new year after a cheap run in the lead-up to Christmas and new record highs in 2023.

Prices were among the lowest they have been all year over the Christmas weekend with independent services stations in Kingston, Underwood and Kuraby selling Unleaded 91 (ULP 91) for less than $1.65/litre.

On the Gold Coast, two service stations in Elanora had ULP 91 for less than $1.67/litre, while on the Sunshine, two had ULP 91 for less than $1.73/litre.

In Ipswich, two service stations in Goodna has ULP 91 for less than $1.69/litre.

In September, prices at some service stations reached a new South East Queensland ULP 91 record of $2.37/litre.

This lead to an average Brisbane price high on October 4 of $2.33/litre.

The lowest pre-Christmas average price in Brisbane was recorded on July 7 when ULP 91 was $1.66/l.

A Compare the Market analysis predicted prices will most likely begin to climb by Boxing Day with it becoming even more expensive by January.

While an RACQ analysis showed prices are expected to remain relatively low until the new year.

Compare the Market’s Chris Ford said while the average prices across greater Brisbane was around $1.76/ litre for Unleaded it is likely it will rise beyond $2 in the new year.

Queenslanders are being warned to brace for petrol. Picture: NCA NewsWire/Tertius Pickard

“We only have to see what’s happening in Sydney and Melbourne to know where prices are headed for Queensland motorists in 2024,” Mr Ford said.

“Unfortunately, it’s looking like it’ll be an expensive start to the year for Queensland drivers. “Prices in Greater Sydney are topping $2.21/litre in the past week, while highs of $2.16 have been recorded in Greater Melbourne.

“Both Melbourne and Sydney are in the thick of their current pricing cycle and if Brisbane follows suit as it usually does, it means our days of prices below $2 a litre are numbered.

“At this stage, it’s highly likely we’ll start to see prices climb from Boxing Day, with lower fuel prices becoming harder to track down in 2024.”

RACQ Principal Economist and Affordability Specialist said around Christmas the market stagnates due to the low volume of fuel being purchased.

“It’s good news for motorists, the Greater Brisbane market is now in the cheap phase of the fuel price cycle and we expect prices will remain relatively low until the end of the year,” he said.

Fuel Prices broke records in September. Photo Steve Pohlner

“We’re encouraging drivers to fill up the tank now and aim to pay 171 cents per litre or less for regular unleaded.”

It comes after a rollercoaster of a year.

In September, Greater Brisbane residents were slugged with some of the highest prices of fuel in the nation peaking at $2.37 which was the highest in 2023.

While the lowest was $1.66 a litre in July, although since December 5, the average has remained below $2/litre.

“It’s perfectly normal for petrol prices to drop dramatically before a fresh fuel pricing cycle begins,” Mr Ford said.

“It means is that drivers need to be proactive and fill up for cheaper while they can.

“Our previous pricing cycles have been hard and fast, and motorists have had just a tiny window of opportunity to fill up before the high prices became the norm.”

2023 high:

Tuesday September 26 $2.37 for ULP 91 (highest individual price)

Wednesday 4 October $2.33/L for ULP 91 (Brisbane average)

2023 low: Friday July 7 $1.66/L for ULP 91 (Brisbane average)

Difference between average prices over the year: 67 cents per litre

Originally published as Petrol prices to spike in new year after lows around Christmas