Thursday 26 September 2024: With the longest price cycles on record of seven weeks, and up to half of service stations in Australia’s largest cities charging the highest price at the top of the cycle, Australian families are paying hundreds of dollars a year more at the bowser.
The NRMA has released the most comprehensive analysis of price cycles across Sydney, Brisbane and Melbourne. The analysis was conducted to coincide with the NRMA launching its national Under the Pump campaign in Sydney to help Australians save at the bowser.
NRMA’s analysis found Australia’s three largest cities have been exposed to price cycles of between four to seven weeks from 2018-2024. By contrast, Australia’s two cheapest cities Perth and Adelaide have cycles of seven days and seventeen days respectively.
The Under the Pump campaign has been launched in North Sydney today and will visit Melbourne on Tuesday 1 October and Brisbane on Thursday 3 October, where the NRMA will release new data specific to those cities.
Today, the NRMA has launched its new nationwide program through the My NRMA rewards app designed to give families a multi-layered approach to reducing their cost of living pressures and saving hundreds of dollars a year the bowser.
A first-of-its-kind, the new NRMA rewards app fuel offering will feature:
- A stacked nationwide (excluding Tasmania) discount offer of up to 13 cents per litre* at selected Ampol Foodary service stations, saving families on over $370 a year
- Real time push notifications informing members when the price cycle has hit the bottom and to fill up – potentially saving them almost $800 a year
- Nationwide Fuel Finder with real-time data of every service station - and a variant offered in Victoria - with the potential to deliver a maximum annual saving of $1,540.
NRMA’s analysis of the six price cycles so far in Sydney this year has found that the average price for regular unleaded at the top of these cycles was 212.2 cents per litre and an average of 45 per cent of Sydney service stations charged this maximum price – a new record.
The top of the June cycle saw a record 60 per cent of service stations charging 229.9 cents per litre.
By contrast, at the bottom of the six cycles the lowest price on average was 182.3 cents per litre. The gap between the top and the bottom of Sydney’s price cycles was almost 30 cents per litre – an annual saving of $780 for a standard 50 litre tank.
The largest gap between the cheapest and most expensive service stations in Sydney hit a record 59.2 cents per litre on 31 August. By giving real-time data to motorists on that day a maximum saving of $29.60 could have been achieved and an annual saving of $1,540.
NRMA spokesperson Peter Khoury said the changing nature of price cycles across Australia’s largest cities was leaving Australians exposed to higher prices for longer and tackling this concern was a key priority for the NRMA.
“This year the NRMA made a commitment to find new ways for Australians to reduce the burden on their family budgets as a result of being exposed to these higher prices at the bowser for longer – today we have delivered on that promise,” Mr Khoury said.
“Price cycles are unique to Australia and while we have seen them across our largest cities for almost two decades we are now seeing similar trends in larger regional towns located near the capitals.
“NRMA research exposed the reality of these cycles: they are lasting longer, prices rise up-to three times faster than they fall – and with this latest research we know that the majority of service stations in Sydney are charging the maximum price longer at the top of the cycle – there are no more outliers.”
The NRMA research also found:
- Sydney recorded its highest average high point price of the 15 April price cycle – 222.9 cents per litre and a record high price of 237.9 cents per litre.
- The gap between the wholesale and retail price (gross margin) in 2024 in Sydney was 19.1 cents per litre, a new annual record.
NRMA Group CEO Rohan Lund said with its 3.1 million members the organisation had size and scale to provide meaningful solutions to the cost of living challenges facing many Australian families.
“The initiatives announced by the NRMA today will finally tilt the challenge of filling up at the bowser to the benefit of motorists” Mr Lund said.
“The NRMA can now send out push notifications to our members who want us to alert them that prices in their area have bottomed out – saving up to $29.60 on a standard tank.
“Through our partnership with Ampol Foodary we can save our members as much as 13 cents per litre if they stack the three discount offers – saving members $7.15 on a standard tank.
“And after years of lobbying the NRMA has seen real-time data laws introduced nationwide, except Victoria. This means we can use the Fuel Finder functionality to pinpoint the cheapest local prices.”
The nationwide program is available to all NRMA members through the My NRMA rewards app. For more information or to join visit mynrma.com.au or call 13 11 22. The program is available through the My NRMA app which is free to existing NRMA members.
