Motorists can save money on fuel by using one of the many free fuel price apps and websites to shop around for lower fuel prices. The ACCC's latest petrol industry report on fuel price apps and websites and petrol price cycles illustrates the benefits that fuel price apps and websites can bring.
Tips to save on fuel
"In the current economic climate, finding savings is important to many motorists. Using apps and websites to choose where and when to fill up can help consumers save money," ACCC Commissioner Anna Brakey said.
In the first half of 2024, the ACCC found over 40 free to use fuel price apps and websites from various providers, ranging from state and territory governments, motoring groups and commercial companies.
"Our study has found that downloads of fuel price apps and the number of active app users have increased over time. These are powerful tools for motorists looking for lower fuel prices, which may be only a short drive away," Ms Brakey said.
Many fuel price apps and websites display near real-time retail fuel prices on a map or in a list, with price data collected as part of various state and territory government fuel price transparency schemes, as well as data from other data sources.
Fuel price apps and websites include the FuelCheck NSW app and website (which also covers the ACT), the Northern Territory MyFuel NT website, and the FuelWatch WA website. The Royal Automobile Club of Queensland, the Royal Automobile Association of South Australia and Royal Automobile Club of Victoria also have apps, and commercial providers such as MotorMouth, PetrolSpy and others have price apps available as well.
Fuel price transparency schemes facilitate comprehensive and timely data
Fuel price transparency schemes are a key source of near real-time price data for fuel apps and websites. These schemes have been introduced in various states and territories since 2001, and now cover all jurisdictions except Victoria.
Fuel price transparency schemes in various Australian jurisdictions
Source: ACCC.
Note: There is no fuel price transparency scheme in Victoria.
The schemes require fuel retailers to report their retail fuel prices, usually within thirty minutes of a price change. Data is then made available for apps and websites to display for consumer use. These schemes provide transparency of easily accessible retail fuel price information for consumers, that is comprehensive, timely and accurate to a large degree.
For Victorian motorists, the available fuel price apps and websites still provide useful information to shop around. However, most of the available services are not comprehensive (as they do not cover all retail sites).
Filling up when petrol price cycles are low can also save money
Petrol price cycles can be frustrating for motorists, especially when petrol prices suddenly increase by 30 cents a litre or more at a retail site. These cycles result from pricing decisions made by various petrol retailers and are a longstanding feature of retail petrol price movements in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The cycles involve a sharp increase in petrol prices, usually led by one or more retail sites, with many others increasing prices over time. This is followed by a slower decline in prices across the market.
Our analysis shows that petrol price cycles have become longer in Sydney, Melbourne and Brisbane. From 2018 to 2023, the average duration of price cycles in these cities increased from around 4 weeks to around 7 weeks. These changes make it more difficult for motorists to time their purchases in these cities, but there are still opportunities to save on fuel.
"A perception may be that all retailers increase prices at once, but our research shows this isn't the case. If you see prices going up at one retail site, apps and websites can help to find another that hasn't yet raised its price," Ms Brakey said.
"In Sydney, Melbourne and Brisbane, average prices across the city can take up to 2 weeks to move from a low point to the highest point, giving time to notice prices going up and shop around."
"There is also often a range of petrol prices available across retail sites at all points of the petrol price cycle, including large differences at certain points. Motorists have opportunities to use apps and websites to find retail sites with relatively lower prices and save," Ms Brakey said.
The following chart shows an example of the range of regular unleaded petrol prices available during the October to December 2023 petrol price cycle in Sydney.
Daily average retail regular unleaded petrol prices by major retail brand in Sydney: October to December 2023
Source: ACCC calculations of data from the FuelCheck NSW price history datasets.
Notes: Prices are averaged across sites on a brand basis using the available FuelCheck NSW data. Major retail brand means a retail brand with at least 7 retail sites under one brand that sold regular unleaded petrol. The 'Independent' category represents a collection of other branded and unbranded sites.
Daily average prices are calculated from price observations at 6 hour intervals.
The 2 vertical dotted lines represent the dates of the lowest and highest points of this price cycle.
In Adelaide, the average duration of the petrol price cycle has become shorter over time and can be around 2 weeks.
Perth has a regular weekly price cycle. ACCC analysis shows that many Perth motorists are aware of the weekly cycle. Around 30 per cent of retail petrol sales volumes in the first half of 2023 occurred on Tuesdays, the cheapest day of the week.
The ACCC website lets motorists know about movements in petrol price cycles in the five largest cities. The website has up-to-date average price charts as well as buying tips, which are updated three times a week to provide guidance to consumers to help them decide when to buy petrol, and when first to shop around before buying.
The report also shows a small number of regional locations with petrol price cycles in 2023. These include the Central Coast, Newcastle, Singleton, Tweed Heads South, Wollongong, all in New South Wales, Koo Wee Rup in Victoria, Caboolture, Gold Coast, Ipswich and Toowoomba in Queensland, and Gawler in South Australia.
Potential savings can be substantial
Motorists among the five largest cities can make substantial savings from both filling up when petrol price cycles are at the lowest, before prices increase, and at other times from switching from retail sites with higher prices to those with lower prices.
According to ACCC calculations, on average in 2023, a motorist filling up 50 litres of regular unleaded petrol on this basis each week could have saved between around $242 in Brisbane and $740 in Perth. Similarly, in 2023, a motorist in Sydney could have saved around $407 across the year, in Melbourne around $333, and in Adelaide around $486. The estimated potential savings are greater in Adelaide and Perth where shorter petrol price cycles can provide more opportunities to buy when the price cycle is around a low point.
"We know that not all motorists have the time or ability to always seek out the lowest available price," Ms Brakey said.
"These illustrative savings however show the potential value of shopping around."
While there is no petrol price cycle in Canberra, Hobart, Darwin or most regional locations, using apps and websites to shop around and purchasing at relatively lower priced retail sites can also save money.
Note for editors
Fuel price transparency schemes
Under most fuel price transparency schemes, fuel retailers are required to report their retail fuel prices to a central system (usually within 30 minutes of a price change at the bowser). The exception is in Western Australia where the FuelWatch scheme requires retailers to log prices a day in advance and lock in prices for 24 hours.
Petrol price cycles
The duration of petrol price cycle means the time it takes for average prices to move from a low point to a high point, and then gradually down to the next lowest point.
Potential savings
The estimated potential savings contain certain assumptions and are estimates only.
Background
The ACCC has been monitoring retail fuel prices in all capital cities and over 190 regional locations across Australia since 2007.
On 14 December 2022, the Treasurer issued a Direction to the ACCC to monitor the prices, costs and profits relating to the supply of petroleum products in the petroleum industry in Australia and produce a report every quarter for a further three years.
In addition to quarterly petrol monitoring reports, the ACCC also prepares petrol industry reports on particular aspects of consumer interest in the fuel market in relation to prices, costs and profits.
