How to save up to $720 in petrol
Written by admin on August 20, 2024
Motorists hoping to save money at the bowser should be keeping a close eye on petrol price cycles to maximise their savings, according to new research.
The Australian Competition and Consumer Commission calculated a motorist filling up 50 litres of regular unleaded petrol each week could have saved up to $740 in 2023, depending on which city they fuelled up.
By waiting till the petrol price cycle was at its lowest throughout 2023, the ACCC found drivers could have saved:
- Perth – $740
- Adelaide – $486
- Sydney – $407
- Melbourne – $333
- Brisbane – $242
The petrol price cycle stems from pricing decisions made by various petrol retailers, which can involve one or more retailers increasing prices to force a sharp rise in petrol prices.
This is followed by other retailers following suit before a slower decline returns in prices across the market.
ACCC Commissioner Anna Brakey said substantial savings can be made when motorists monitor petrol price cycles and competing retailers to ensure they grab the best price before it possibly increases.
“We know that not all motorists have the time or ability to always seek out the lowest available price,” Ms Brakey said.
“These illustrative savings however show the potential value of shopping around.”
The ACCC found the average duration of price cycles in these cities increased from around four weeks to about seven weeks between 2018 to 2023.
The analysis also discovered that petrol price cycles have become longer in Sydney, Melbourne and Brisbane during that time.
Ms Brakey said these changes make it more difficult for motorists to time their purchases in these cities, but there are still opportunities to save on fuel.
“A perception may be that all retailers increase prices at once, but our research shows this isn’t the case,” Ms Brakey said.
“If you see prices going up at one retail site, apps and websites can help to find another that hasn’t yet raised its price.
“In Sydney, Melbourne and Brisbane, average prices across the city can take up to two weeks to move from a low point to the highest point, giving time to notice prices going up and shop around.
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“There is also often a range of petrol prices available across retail sites at all points of the petrol price cycle, including large differences at certain points.
“Motorists have opportunities to use apps and websites to find retail sites with relatively lower prices and save.”
Meanwhile, Canberra, Hobart, Darwin or most regional locations do not have petrol price cycles, the ACCC encouraged drivers to monitor apps and websites find the best price in a bid to save money.
