Households brace as petrol prices skyrocket by up to 30 per cent

Australian families are facing ever higher cost-of-living pressures, as fuel prices across the country jump by as much as 30 per cent in some areas.

Along with interest rates, groceries, energy bills, and new-car prices, petrol is now the latest line-item on household budgets to increase significantly in recent times.

While some fuel stations around Melbourne are holding steady at around $1.82 per litre for 91-octane unleaded, many have already jumped to $2.25/litre across the metropolitan area – a difference of almost 24 per cent.

Compared with the previous week, where prices were as low as $1.77/litre, the cost to fill-up a 50-litre tank on a Toyota Corolla has gone from $88.50 to $112.50.

For owners of the Holden Commodore – which remains one of the most popular vehicles registered in Australia – they will be handing over an additional $35 every time they fill up.

Despite the average price of unleaded sitting at $1.94/litre in Melbourne, in Sydney, the average price of unleaded has skyrocketed to $2.14/litre.

MORE: Fuel prices continue to increase financial pressure on Australian households

While there is still relatively cheap petrol around for those willing to seek it out, the story is even worse for owners of diesel-powered vehicles.

At the time of writing, most stations around Melbourne and Sydney were pushing well above $2.00/litre – with many as high as $2.30/litre.

However, the worst offender was found in Melbourne’s Keilor East, with one station selling diesel at $2.48/litre, according to Petrol Spy.

It seems the price of petrol and diesel has been trending upwards across the globe, according to data from the Australian Institute of Petroleum.

One of the main reasons behind the price spike has been the increasing cost of crude oil, with Brent going up by 20 per cent from lows recorded in late June 2023.

This comes following production cuts announced by Saudi Arabia and Russia.

According to the Australian Automobile Association, transport costs – which includes fuel, car repayments, and insurance – far outpaced inflation in the first three months of the year, exceeding $500 per household for the first time in the country’s three largest cities.

MORE: Can I claim petrol on my tax return?

“The cumulative effect of continually rising transport costs is a heavy burden at a time when Australians are feeling cost of living pressures across the board,” AAA Managing Director Michael Bradley said in a written statement in June.

“Transport is a significant and unavoidable expense for households and is one of the key drivers of inflation.”

Motorists have been encouraged to utilise fuel-price comparison apps, which can show the nearest location of the cheapest fuel station.

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