Australians going away for the Australia Day long weekend might consider filling up the tank earlier than planned, with petrol prices in the nation’s largest capitals set to rise.

After a big squeeze over Christmas, motorists in Sydney and Melbourne have seen sub-$2-a-litre petrol in the New Year, with MotorMouth figures showing average prices around $1.76 a litre on Sunday.

But with the Australia Day long weekend around the corner, bowser prices have been rising, indicating the next market upswing is imminent.

Motorists in Brisbane are already copping it, with average prices reaching $2.10 a litre on Sunday, up more than 21 per cent from the $1.72 a litre on January 1.

In other words, those living in Melbourne and Sydney could save on their long weekend road trip by filling up ahead of time, with the Australian Competition and Consumer Commission (ACCC) issuing “buy” or “shop around” advice for motorists living across those cities.

“Prices appear to be around the lowest point in the cycle,” the ACCC said of Melbourne’s bowsers.

“Now is a good time for motorists to buy petrol.”

Source: Motormouth (click to enlarge).

Of Sydney, the ACCC said petrol prices have already begun rising.

“If motorists shop around, they may find some retailers that have not yet increased prices,” the ACCC said.

Petrol prices across Australia’s smaller capitals are much more stable and have been in decline over January, with motorists in Darwin, Hobart and Canberra paying about $1.80-$1.85 a litre.

Adelaide prices have been more unstable, although current prices sit at $1.86, they have fluctuated between around $1.65-$2.05 a litre in the past month.

In Perth, where bowsers are regulated, prices have moved between about $1.65-$1.98 a litre over the past month and were sitting around $1.73 on Sunday, according to Motormouth figures.

Australians heading on a road trip from the major capitals would save more filling up in the city than they would at their regional destination, with service stations around tourist hotspots charging more heading into the long weekend.

That includes the central coast, where prices are averaging $1.86 a litre, and Tweed Heads in northern NSW, where prices are hovering around $1.90 a litre ahead of Australia Day holidays.

The outlook for petrol prices beyond Australia and into the early parts of 2024 remains mired in uncertainty, particularly amid the risk of regional escalation over Israel’s war in Gaza.

Interruptions to oil supplies in the Middle East could constrain supply and push prices up, but analysts are weighing that risk against the prospects of slower economic growth across North America and Europe on the back of interest rate hikes.

The International Energy Agency is forecasting more subdued demand for oil in 2024, though it has shifted its forecast upwards in the New Year to reflect lower than expected prices towards the end of 2023 and optimism about growth in China.