Sydney Motorists Hit with Record-High Fuel Prices in 2024, NRMA Reports

New research reveals that Sydney’s fuel prices have reached alarming new heights in 2024, with motorists facing unprecedented costs at the pump. According to the NRMA (National Roads and Motorists' Association), this year has seen record fuel price peaks, with Sydney setting the highest average price at 222.9 cents per litre in April and a staggering top price of 237.9 cents per litre.

Fuel Price Records and Their Impact

In contrast, the lowest average price recorded in 2024 was 182.3 cents per litre, creating a 30 cent-per-litre difference between the high and low points of Sydney’s price cycle. For motorists, this translates into a potential $780 annual increase in fuel costs depending on when they fill up during the price cycle.

Price cycles, which are a unique feature of Australia's fuel market, have also extended in duration. In 2024, Sydney, Brisbane, and Melbourne saw their cycles stretch to seven weeks, compared to much shorter cycles in Adelaide and Perth, which lasted just 7 to 17 days. At the peak of these cycles, Sydney’s average fuel price reached 212.2 cents per litre, with nearly 45% of service stations charging the maximum rate.

NRMA’s App Offers Savings Amid Price Hikes

To help drivers combat these rising costs, the NRMA has launched a new rewards app, aimed at providing real-time updates on fuel prices and offering discounts at selected Ampol Foodary servos. The app promises to save drivers up to 13 cents per litre, potentially reducing annual fuel expenses by $370. With real-time notifications for the best times to refuel, the NRMA estimates that drivers could save up to $800 a year by taking advantage of low points in the price cycle.

Additionally, the NRMA’s Nationwide Fuel Finder tool provides up-to-the-minute data on service station prices, offering the potential to save up to $1540 annually by comparing costs across the city.

A Growing Gap in Fuel Prices

On 31 August 2024, Sydney experienced the largest price gap between service stations, with a difference of 59.2 cents per litre between the cheapest and most expensive stations. By shopping around or using the NRMA’s real-time data, drivers could have saved $29.60 by simply filling up at the right location.

The Broader Picture

While Sydney’s motorists are feeling the pinch, the NRMA plans to release similar reports on Melbourne and Brisbane next week. Price cycles are common across Australia’s largest cities but are absent in Canberra, Hobart, and Darwin. Additionally, diesel prices tend to remain more stable, unaffected by these cycles.

Fuel prices in Australia are driven by external factors, with the country’s prices linked to the Singapore price index, the regional refining and distribution hub. This differs from the global Brent crude oil index, with local changes typically felt about two weeks after global shifts.

The soaring fuel prices in 2024 serve as a reminder to drivers to stay informed, shop smart, and take advantage of the tools and apps available to ease the burden on their wallets.