Price cycles (i.e. the sudden, sharp increases in the price of petrol, followed by a gradual decline) are a prominent, and longstanding, feature of retail petrol prices in Australia’s five largest cities (i.e. Sydney, Melbourne, Brisbane, Adelaide and Perth). They occur among all the main grades of petrol, but not for diesel and automotive LPG prices. Price cycles are frustrating for motorists, especially when prices increase quickly and by significant amounts.

However, price cycles do provide opportunities for motorists to buy at relatively low prices towards the bottom (or trough) of the cycle. These prices are often below wholesale cost, as reflected by published terminal gate prices (TGPs). While not all motorists have discretion about the timing of their petrol purchases, many do.

In the first nine months of 2018, daily average prices were at, or below, estimated average supply costs around one third to half of the time in Sydney, Adelaide and Perth. In Melbourne and Brisbane they were at or below estimated average supply costs between around 20 and 40 per cent of the time.

The ACCC encourages motorists to maximise their opportunities throughout the price cycle and purchase petrol at the lowest possible price. This report describes the opportunities available for motorists and highlights the potential savings they can make.