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The phrase “getting slugged at the bowser” is one of my favourites and, as far as I’m aware, uniquely Australian. There’s nothing quite like stony-faced newsreaders saying it whenever petrol prices rise unexpectedly, something I’m sure looks like complete nonsense to anyone unfamiliar with that particular slice of Australiana.
But what about when you actually get slugged at the bowser? That’s no joke.
Petrol prices are on the rise, but there are some things you can try to save at the bowser.Credit: Aresna Villanueva
About two years ago, during the pandemic, we had the halcyon days for car owners, as petrol prices fell to their lowest in 22 years, with some lucky punters paying under $1 a litre for fuel. This was thanks to oil prices falling to record lows as supply outstripped demand amid near-global lockdowns. At one point, oil prices even turned negative for the first time ever, a rare moment during COVID where something “unprecedented” actually felt like a good thing.
Following that anomaly, prices began to climb again as demand returned and then escalated as the war in Ukraine disrupted global markets. The Morrison government provided some temporary relief in early 2022 when it halved the rate of fuel excise (a tax motorists pay on their petrol) however this was only a temporary measure and fuel-price pain is back with a vengeance.
What’s the problem?
According to the ACCC, prices for a litre of regular unleaded in Sydney and Melbourne hit $2 around the start of the month, though they have moderated somewhat to near $1.80. Last month’s higher than expected inflation figures were largely attributed to fuel costs.
Australians spend just under $100 a week on fuel on average, according to the Australian Automobile Association, placing it firmly in the top 10 household expenses, and Finder’s Consumer Sentiment Tracker rates it the third most stressful expense behind housing (rent/mortgage) and food. In short, petrol is a necessary evil that no one likes paying for, especially when you find yourself being slugged by unexpectedly high prices.
What you can do about it
Thankfully, saving money on fuel has become almost its own art form, so there are plenty of things to try if you’re hoping to cut costs.
- Compare prices: There are a plethora of apps out there that show what service station in your area is offering the cheapest prices, and you may be surprised at the disparity between locations that are only a few blocks away. In Victoria, the most popular app is PetrolSpy, and in NSW, the government runs an app called FuelCheck.
- Cop-a-docket: Both Coles and Woolworths still offer 4 cents off per litre at their affiliated service stations when you spend a certain amount at the supermarkets. If you have a Costco near you, it’s worth considering the joining fee to enjoy the discounts offered at their member-only service stations, too.
- Drive smart: Ever heard of eco-driving? A trial by toll road operator Transurban found when drivers modify their driving habits to be more eco-friendly, they saved an average of 5 per cent on their fuel costs, and a similar study from the University of Technology Sydney found this could stretch as high as 40 per cent. RACV head of policy, James Williams, says drivers looking to reduce their fuel consumption should accelerate gently, flow smoothly with the traffic, drive at a lower speed and avoid congestion where possible. “Stop-start driving is very fuel inefficient, so plan your travel to avoid driving in congested traffic,” he says.
- Check your car: Williams also advises drivers to do a once-over on their cars to ensure they’re operating at peak efficiency. This includes pumping up your tyres, reducing drag by removing external attachments such as roof racks when they’re not in use, and removing unnecessary heavy objects from your boot. “The more weight a vehicle carries, the more fuel it uses, particularly in urban driving,” Williams says. Cutting back on your aircon while driving can also make a difference to your fuel consumption, he says.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.