Melbourne motorists are enjoying the cheapest petrol prices in the country this festive season, with some service stations offering regular unleaded for as little as $1.58 a litre. However, fuel experts are warning that the relief will be short-lived, with a sharp price increase expected in early January.
Drivers across the city have been taking advantage of the low prices during the busy holiday period, providing welcome financial relief after Christmas spending and summer travel costs. According to data from the Australian Institute of Petroleum, these are the lowest fuel prices recorded in Melbourne over the Christmas period since 2021, when demand dropped sharply during the COVID-19 pandemic.
NRMA spokesman Peter Khoury said Melburnians still had a narrow window to benefit from the cheaper fuel before the next spike in the price cycle.
“There’s still time for drivers to fill up at a discount,” Mr Khoury said. “Petrol prices in Melbourne are currently sitting at the bottom of the cycle, and there are plenty of bargains across the city.”
The Australian Competition and Consumer Commission (ACCC) notes that petrol prices in Melbourne typically peak every 37 days. If current trends continue, motorists could be facing prices close to $2 a litre by around January 7. While the average price is currently about $1.68 per litre — the lowest of all Australian capital cities — that is expected to rise quickly once the cycle turns.
Families and commuters have been quick to capitalise on the savings. At a self-serve station in Kingsville on Saturday, Rogan McGann and Stefanie Fuhge stopped to refuel with their nine-year-old son Felix, securing petrol at $1.58 a litre.
“It saved me about $15 compared to a usual fill-up,” Mr McGann said. “Around this price is fantastic. Every little bit helps, especially at this time of year.”
The same station also attracted Adrian Barker and his son Griff Barker, a rising football talent, who were logging learner driving hours before stopping to refuel.
“With four cars in the family, I try to fill up whenever prices are low,” Mr Barker said. “I’ll definitely be back before New Year, because we know what’s coming.”
His son agreed, noting the pressure fuel costs place on household budgets. “Everything is expensive these days, so it really helps when prices drop like this,” he said.
While Melbourne drivers are currently benefiting from the cheapest petrol in the nation, experts are urging motorists not to delay, warning that the post-holiday period is likely to bring a swift and significant increase at the bowser.
