Motorists will be squeezed at the bowser over the Christmas rush, with petrol prices rising across major cities as a five-week reprieve comes to an end.
Average petrol prices across Sydney, Melbourne and Brisbane rose 2.3 cents per litre (CPL) after hitting a multi-week low on Monday, according to online Motormouth figures available on Friday.
Commsec senior economist Ryan Felsman said the semi-regular price cycles that characterise Australia’s major east coast petrol market have bottomed out and are now heading up again.
“The five-week east coast retail price discounting cycle has ended,” Mr Felsman told TND.
“A price hike is now underway in Brisbane, Sydney and Melbourne.“
Average petrol prices have risen from 169.4 CPL to 170.2 in Melbourne, from 169.3 CPL to 172.8 across Sydney, and from 167.7 CPL to 170.3 in Brisbane, Motormouth data shows.
And this is just the start. Typical cycles see prices rise by more than 20 CPL, meaning families will be squeezed at the bowser at the height of the Christmas holidays.
The week between Christmas Day and New Year’s Day is one of the busiest of the year for motorists, with millions on holiday or off to reunions with families and catch-ups with friends.
Geoff Trotter, CEO at fuel-price comparison company FuelTrac, thinks petrol prices in major cities will peak before Christmas Day.
“Most are at the bottom and will be heading up to the peaks [seen] in the previous cycle,” he told TND.
“Most will peak before Christmas Day, [the] question is how long they [petrol stations] will try and hold them up.”
Relief for smaller cities
However, prices across Adelaide, Hobart and Canberra are still trending downwards heading into the holiday period.
National Road Motorists Association (NRMA) spokesperson Peter Khoury said the extent of the price-hike cycle now underway in Sydney, Melbourne and Brisbane is still unclear.
“There will still be bargains around even as prices rise at some petrol stations,” Mr Khoury said.
Mr Khoury’s advice for motorists is to use petrol price comparison apps to determine where the best bargains are.
The Australian Competition and Consumer Commission (ACCC) is also advising motorists to shop around.
“Prices are increasing,” the ACCC said in its advice to Sydney motorists on Friday, which was replicated for both Brisbane and Melbourne.
“If motorists shop around, they may find some retailers that have not yet increased prices.”
