Fuel prices tipped to rise before long weekend

The average national price for petrol in Australia dipped by 25 cents per litre during the past three months as a result of the coronavirus pandemic, new data shows.

However, easing travel restrictions means motorists can expect an upward trend in pricing at the pump – potentially before this upcoming Queen’s Birthday long weekend.

Quarterly petrol price analysis from comparethemarket.com.au revealed a sharp decline in petrol prices nationally during the three months to June.

Driven by a fall in demand after millions of Australians were ordered to stop non-essential travel due to COVID-19, capital cities in particular witnessed fuel prices not seen in years.

“During the height of the pandemic, petrol prices were at the lowest we had seen in decades. Our analysis shows that motorists paid an average of 113cpl for unleaded petrol over the last quarter – 25cpl less than in the March quarter,” said spokeswoman Abigail Koch.

“Motorists in Canberra paid the most, with a quarterly average of 122cpl, while Adelaide had the cheapest petrol, at 108cpl.”

With the Queen’s birthday long weekend presenting the first intrastate holiday opportunity for many Australians, experts are recommending motorists top up their tanks early.

“With travel restrictions across the country easing as of June, we advise motorists to shop around for the cheapest petrol in their area ahead of the long weekend, or if they are taking a road trip, pinpoint petrol stops along to secure the lowest prices,” said Koch.

“Motorists in Sydney, Brisbane, Perth and Canberra are advised to shop around for the lowest fuel prices in their area, as prices are expected to rise this week.

“Meanwhile, Melbourne and Adelaide motorists will continue to see low prices at the bowser over the next few days as they near the end of their petrol price cycles.”

As for the long-term forecast? It seems the recent discounts enjoyed by motorists will slowly be phased out, as normal life slowly resumes.

“Since the end of April, retail and wholesale fuel prices have slowly recovered,” said Koch.

“Wholesale prices are forecast to ease slightly next week but may soon rise again. While retailer prices overall have not yet risen to reflect increased import costs, they appear to be starting to increase once again.”