“We haven’t reached the peak yet”: Sydney sees an increase in petrol prices

Sydney Petrol Prices Hit $2.35 a Litre as Experts Warn of Continued Price Increases

Motorists in Sydney are feeling the pinch as petrol prices soar to $2.35 per liter at some service stations. Experts are advising consumers to be vigilant and compare prices, as discounts are still available despite the skyrocketing costs.

According to the NRMA, the average price of regular unleaded fuel in Sydney currently stands at 201.4 cents per liter. However, there is a significant disparity between the most expensive and most affordable prices in the city.

The most affordable prices for regular unleaded petrol in Sydney are around 178 cents per liter, but numerous petrol stations have already reached the staggering price of 235.9 cents per liter.

Mark McKenzie, the chief executive of the Australasian Petroleum and Convenience Marketers Association (ACAPMA), explained that the high prices are a result of Sydney’s petrol price cycle being in its ascending phase. He emphasized that Sydney has not yet reached the peak of its price cycle, indicating that discounts are still available for savvy consumers who shop around.

CommSec chief economist Craig James stated that the average petrol price in Sydney is fair based on wholesale prices. He noted that typically, a gross margin of around 15 cents per liter is added to the wholesale price, which is around $1.88, suggesting that a fair price for petrol in Sydney would be approximately $2.03 per liter.

While Sydney prices may be peaking earlier than other capital cities, motorists across the country should brace themselves for higher prices at the pump. The RACV reported the average unleaded petrol price in Melbourne at 191.2 cents per liter, which is 10 cents per liter less than Sydney’s average price. McKenzie highlighted that Melbourne and Sydney are at different points in the price cycle, indicating that Melbourne’s prices will rise as Sydney’s prices fall.

In Adelaide and Canberra, motorists are facing even higher prices than those in Sydney, with data showing Adelaide’s average price at 216.4 cents per liter and Canberra’s at 212 cents per liter. Meanwhile, Perth, Hobart, Darwin, and Brisbane are currently experiencing lower points in their price cycles.

Experts suggest that fuel prices in Australia are not skyrocketing but remain consistently high due to global oil prices and a weak Australian dollar. These high prices may prompt consumers to cut back on spending in other areas, potentially impacting inflation and influencing decisions made by the Reserve Bank of Australia.

Despite the challenges posed by rising petrol prices, there are still opportunities for savvy consumers to save money by comparing prices and taking advantage of discounts. As prices continue to fluctuate, staying informed and monitoring fuel prices closely can help motorists make more economical choices when filling up their tanks.