Melbourne drivers are getting a rare slice of good news this summer. Petrol prices have fallen to their lowest level in years, giving motorists a bit of breathing room after a costly Christmas. But experts are warning that the relief won’t last much longer — and that prices are already gearing up for another climb.
Melbourne’s Cheapest Fuel in Years
For now, regular unleaded petrol in Melbourne is sitting as low as $1.58 per litre, making it the cheapest fuel seen over the Christmas period since 2021. The drop has come as a pleasant surprise for drivers who’ve been squeezed by rising grocery bills, rent, and interest rates. According to the Australian Institute of Petroleum, Melbourne currently boasts the lowest average petrol price of all capital cities, hovering around $1.68 per litre.
The relief, however, is only temporary. Fuel experts warn that the city’s fuel market runs on a predictable cycle — and this low point won’t last. The NRMA has forecast that petrol prices typically peak every 37 days in Melbourne. Based on that pattern, the next jump could hit in early January, potentially pushing prices back toward $2 per litre.
Drivers Race to Fill Up Before Prices Rise
The price dip has sparked a small rush to the pumps. In Kingsville, locals like Rogan McGann and Stefanie Fuhge made sure to fill up their car while prices were still at $1.58. “Around this price is fantastic,” McGann said. “Every little bit helps.” For families juggling multiple vehicles, the savings are noticeable. Adrian Barker, who owns four cars, said he’s filling every tank before the New Year hits.
“We’ve got four cars in the family,” he said to Herald Sun. “It’s expensive nowadays so it’s good that he helps out.” These moments of cheaper fuel might be fleeting, but they’re deeply appreciated — especially when every dollar feels stretched thinner than ever.
Why Prices Are About to Climb Again
Despite the relief, experts say this is just the bottom of the price cycle. Once this phase ends, prices are expected to rise sharply again, driven by global oil costs, local supply trends, and refinery margins. Historically, Melbourne’s petrol market moves in waves — prices drop suddenly, hold for a short window, then shoot up again before slowly easing.
The Australian Competition and Consumer Commission (ACCC) tracks this pattern closely and says the next spike could arrive as early as January 7. For now, Melbourne motorists are taking what they can get. After a financially draining year, a few weeks of cheaper petrol feels like a win — even if it’s short-lived. So if you’re in Melbourne and your tank’s half-empty, it might be worth topping up. The next price surge could hit sooner than you think.
