NRMA Finds Petrol Prices in Australia’s Biggest Cities Are ‘Artificially Inflated’

Petrol prices in Australia’s biggest cities, including Sydney, is reportedly being priced above competitive market prices by fuel companies.

According to new analysis from the National Roads and Motorists Association (NRMA), real time data of an increased competitive market saw Darwin go from the most expensive city to second cheapest in around seven years — but that doesn’t seem to happen in other major Aussie cities.

In Sydney, Brisbane and Melbourne, the highly competitive markets should drive prices lower like the data showed for Darwin — but it doesn’t seem to happen.

The NRMA explains that pricing of petrol works in cycles, and Brisbane, Sydney and Melbourne are artificially inflating prices.

Perth, which is currently the cheapest city for petrol, has a weekly price cycle — so prices always rise on Wednesday mornings. If you compare Perth’s prices with the nation’s capital – nearly 15 cents more expensive – the NRMA said an average Aussie family from Canberra could be paying $426 per year more than Western Australian families.

“Artificially inflated prices don’t just hurt families, they also have a negative impact on the Australian economy at a time when cost of living pressures and inflation sit at the top of concerns for Australia’s policymakers and families alike,” said NRMA spokesman Peter Khoury. “Solving for this problem in an election year will be absolutely critical.”

Which Australian city has the most expensive petrol prices?

NRMA’s analysis showed Canberra as being the most expensive city for petrol, with the average price for regular unleaded costing 196.3 cents this year.

Brisbane came in at second most expensive, with Sydney and Melbourne taking third and fourth spots. The average price for a litre of unleaded petrol has risen by more than 50 cents in Sydney and Brisbane in just five years.

In 2017, Darwin was the most expensive city in Australia for petrol prices — in the last seven years, real-time pricing data and competition among retailers has developed, and it’s now the second cheapest city. The NRMA say that Darwin should be an example for the larger cities.

“There is no justifiable reason for our biggest cities to be among the most expensive – it just doesn’t pass the pub test,” said Khoury.

Calls for an ACCC inquiry into petrol price gouging

The NRMA is now calling for an ACCC inquiry in this petrol price gouging.

“The NRMA wants the ACCC to dive into these longer price cycles and the fact that they have resulted in higher prices for Australian families.”

Queensland’s transport minister has backed the calls for an inquiry.

“An ACCC inquiry, which the federal government would be in a position to initiate, may deliver some of those real solutions,” Brent Mickelberg told the ABC.

“We stand willing and able to support the federal government if they choose to go down that path.”

The 2024 rankings of Australian cities

1. Perth – 181.4

2. Darwin – 182.5

3. Adelaide – 182

4. Hobart – 188.6

5. Melbourne – 190.3

6. Sydney – 191.1

7. Brisbane – 195

8. Canberra – 196.3