Regan Brown
The cost of fuel in Australia has been a concern for many Australians, with fuel costs on the rise. A survey conducted in 2023 found that Australians spend, on average, over $1000 a year on fuel, with Western Australians facing the highest average cost of petrol at $134 per month or $1609 per year. In 2023, it was found that Australians spent around $95 a week on fuel, with transport costs rising by more than $100 a week on average in the past three years. With the increase in fuel costs, many Australians are opting for more fuel-efficient cars or electric vehicles, and nearly half of Australians are choosing to drive less.
| Characteristics | Values |
|---|---|
| Average cost of refuelling a car | $73.10 |
| Average cost of refuelling a diesel car | $100+ |
| Average weekly fuel cost per household in Geelong | $121 |
| Average weekly fuel cost per household in Wagga Wagga | $66.6 |
| Average weekly fuel cost per household in regional areas | $101.56 |
| Average cost of petrol in Australia per year | $1,404 |
| Average cost of petrol in Australia per month | $117 |
| Average cost of petrol in Western Australia per month | $134 |
| Average cost of petrol in Victoria per month | $111 |
| Average cost of petrol in Brisbane, Perth, Sydney, Melbourne and Adelaide in the September quarter of 2023 | 195.6 cents per litre |
| Average cost of petrol in Brisbane, Perth, Sydney, Melbourne and Adelaide in the quarter before September 2023 | 182.9 cents per litre |
| Amount spent on fuel by Australians over 65 | $838 a year |
| Amount spent on fuel by Australians aged 35-44 | The highest average |
| Percentage of Australians who would opt for a more fuel-efficient car if prices rose by $1 per litre | 49.3% |
| Percentage of Australians who drive SUVs | The majority |
| Percentage of Australians who drive utes | 100% of those surveyed who owned a ute said it had become more expensive to own a car |
| Percentage of Australians who drive diesel vehicles | N/A |
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What You'll Learn
Average monthly fuel costs
The average cost of petrol in Australia is $117 a month, or $1,404 a year. Western Australians have the highest average cost of petrol than any other state, at $134 per month or $1,609 per year. This is due to Western Australians experiencing the largest increase in commuting times from 2002 to 2017. Victoria has the cheapest average petrol costs at $111 a month, or approximately $1,339 a year.
In 2023, Australians spent around $95 a week on fuel, with the average cost to refuel a car being $73.10. This is almost $5 more than what it was in 2022. In the September quarter of 2023, the average cost of petrol in the five largest cities in Australia (Brisbane, Perth, Sydney, Melbourne, and Adelaide) was 195.6 cents per litre. This was an increase of 12.7 cents per litre from the previous quarter.
The ongoing costs of owning a car can be significant, with transport costs across Australia rising by more than $100 a week on average in the past three years. Fuel and car loan repayments have seen a notable spike since 2020, while other costs such as car insurance, registration, and servicing have been increasing gradually over time.
With around 90% of Australia's fuel supply being imported, the country is susceptible to global events affecting oil prices. For instance, COVID-19 lockdowns in 2020 led to a decrease in petrol prices, but as countries reopened, prices began to rise.
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Fuel costs by region
Fuel costs in Australia vary across different regions and are influenced by various factors, including global and local dynamics. The Australian Competition and Consumer Commission (ACCC) monitors fuel prices and provides insights into price cycles in the country's five largest cities: Sydney, Melbourne, Brisbane, Adelaide, and Perth.
In the first quarter of 2024, the weekly fuel costs per household in regional areas of Australia averaged around 101.56 Australian dollars. However, there were variations within these regions. For example, Geelong had weekly fuel costs of over 121 Australian dollars, while Wagga Wagga averaged approximately 66.6 Australian dollars during the same period.
Petrol prices in Australia's largest cities tend to move in regular patterns, known as petrol price cycles. These cycles are influenced by the pricing decisions of petrol retailers and can result in sharp increases over short periods, followed by gradual decreases. However, smaller cities and most regional locations, such as Canberra, Hobart, and Darwin, typically do not experience these price cycles.
The price of petrol in Australia is influenced by global factors affecting international crude oil and refined fuel prices. Local factors, such as competition among retailers, can also impact retail prices. Additionally, Australia's local oil refineries compete with imported petroleum products from large, highly efficient refineries in Asia, which further influences pricing. Despite these dynamics, Australia has among the lowest petrol and diesel prices compared to other OECD countries.
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Fuel costs by vehicle type
The cost of fuel in Australia varies depending on the type of vehicle. On average, it costs Australians $73.10 to refuel a car, up from $68.94 in 2022. However, diesel cars, utes, and 4x4s are significantly more expensive to refuel, often costing over $100 per refill. This is reflected in surveys, where owners of these vehicles report being the most impacted by rising fuel prices.
Electric vehicles, on the other hand, have the lowest refuelling costs, averaging $31.65. This is likely a contributing factor to the rising popularity of electric vehicles in Australia. In 2023, battery electric, plug-in hybrid, and hybrid vehicles made up 16.2% of all new vehicles purchased, with the percentage of battery-electric vehicles sold almost doubling from 2022.
The cost of fuel also varies across different states in Australia. For example, New South Wales had the highest average refuelling costs at $75.63, while Queensland had the lowest at $69.71. Additionally, households in regional areas of Australia spent more on fuel, with an average weekly cost of $101.56 in the first quarter of 2024.
To estimate fuel costs for different vehicles, individuals can use a fuel cost calculator. This tool takes into account factors such as travel distance, mileage (fuel efficiency), and local fuel prices to provide an estimate of daily, monthly, and yearly fuel expenses.
Overall, the choice of vehicle type and location in Australia can significantly impact fuel costs, with diesel cars, utes, and 4x4s being the most expensive to refuel, and electric vehicles offering the lowest refuelling costs.
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Fuel costs by age
Fuel costs in Australia have been steadily rising, with the cost of vehicle fuel in the country increasing by 7.9% in the year leading up to September 2023. The average cost to refuel a car in 2023 is $73.10, up from $68.94 in 2022.
A survey conducted by Budget Direct in 2023, with a sample size of 1002 Australian adults, revealed that 52% of respondents aged 18-27 believed that the cost of owning a car had only gotten slightly more expensive in the past year. This age group was also the most likely to use hybrid vehicles, with 9% of respondents in this category.
Respondents aged 38-47 were the most likely age group to spend more time on the road, with 19.3% reporting increased fuel usage compared to the previous year. Additionally, 59.5% of respondents in the 28-37 age bracket indicated that they would choose a more fuel-efficient car, while two-thirds of those aged 58-75 stated they wouldn't change vehicles even if fuel prices rose.
It's worth noting that transport costs in Australia have risen significantly, with an average increase of over $100 per week in the three years preceding 2023. As a result, many Australians opt for fuel-efficient cars or electric vehicles, with 49.3% indicating they would consider this option if fuel prices rose by $1 per litre.
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Factors influencing fuel prices
Several factors influence fuel prices in Australia. The most significant of these is international benchmark prices, which are linked to crude oil prices. Crude oil is an internationally traded commodity, and its price is determined by changing global demand and supply factors. As a result, the price of petrol at Australian refineries is based on international petrol prices.
Another critical factor is the value of the Australian dollar against the US dollar. Changes in the exchange rate can impact the cost of fuel in Australia, although this relationship is complex and not always predictable.
Local factors, such as the level of competition in the marketplace, also play a role in influencing fuel prices. Pricing decisions by wholesalers and retailers can affect fuel costs, as they have different costs that they need to recover through their pricing, including wharfage, freight, insurance, transport, storage, salaries, rent, and utilities. Additionally, wholesalers and retailers need to make a profit to sustain their businesses.
Retail fuel prices in Australia include a Goods and Services Tax (GST) of 10%. Excise rates on fuel and petroleum products, excluding aviation fuels, are adjusted twice a year according to the consumer price index (CPI).
Petrol price cycles, which are regular patterns of price increases and decreases observed in Australia's largest cities, are the result of pricing policies and decisions made by various petrol retailers. These cycles do not occur uniformly across all cities and are not influenced by changes in wholesale prices or underlying costs.
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Frequently asked questions
Australians spend over $1000 on fuel per year on average, with Western Australians spending the most at $1609 per year and Victorians spending the least at $1339 per year.
Australians spend $70-134 on fuel per month on average, with Western Australians spending the most at $134 per month and Victorians spending the least at $111 per month.
Australians spend $60-95 on fuel per week on average, with households in regional areas spending around $101.56 per week.
It costs Australians an average of $73.10 to refuel a car, with diesel cars, utes, and 4x4s costing over $100 per refuel.
