In welcome news for millions of Australian motorists, petrol and diesel prices have dropped across all major cities starting June 3, 2025. The reduction, driven by falling global crude oil prices and improved refinery margins, is expected to provide substantial relief to households and businesses grappling with rising living costs. With fuel being a core driver of inflation and transport costs, this price cut could positively influence everything from grocery bills to supply chain operations.
Fuel price drops vary from state to state but average a fall of 6 to 10 cents per litre on unleaded petrol and around 5 to 7 cents per litre for diesel. The new pricing applies to regular unleaded (91), premium unleaded (95 and 98), and diesel fuels sold by major service stations such as Caltex, Shell, BP, Ampol, and independent retailers across the country. Below, we break down the updated rates, highlight the cheapest cities, explain the reasons behind this national shift, and offer tips for saving more at the pump.
New Fuel Prices in Capital Cities as of June 3
Following the announcement, petrol and diesel prices have been revised nationwide. Some cities are witnessing the lowest fuel prices in nearly a year, particularly in regional and outer metro areas.
Capital city fuel prices (average per litre as of June 3, 2025):
| City | Unleaded Petrol (91) | Premium Unleaded (95) | Diesel |
|---|---|---|---|
| Sydney | $1.81 | $1.94 | $1.78 |
| Melbourne | $1.82 | $1.96 | $1.80 |
| Brisbane | $1.84 | $1.97 | $1.81 |
| Adelaide | $1.79 | $1.92 | $1.76 |
| Perth | $1.78 | $1.91 | $1.75 |
| Hobart | $1.92 | $2.05 | $1.89 |
| Canberra | $1.88 | $2.00 | $1.86 |
| Darwin | $1.95 | $2.09 | $1.90 |
Key highlights:
- Perth and Adelaide offer the cheapest unleaded petrol and diesel among major cities.
- Darwin and Hobart continue to have the highest fuel rates, largely due to limited supply routes and regional delivery costs.
- Premium fuels remain costlier, especially in territories and remote areas.
State-Wise Fuel Price Averages Across Australia
Fuel costs vary by state due to regional taxes, transportation charges, and competitive pricing strategies. Here’s a broader look at the average prices across all Australian states and territories:
| State/Territory | Avg Unleaded (91) | Avg Diesel | Price Change Since May |
|---|---|---|---|
| New South Wales | $1.82 | $1.79 | -7 cents |
| Victoria | $1.83 | $1.80 | -8 cents |
| Queensland | $1.84 | $1.81 | -6 cents |
| South Australia | $1.80 | $1.77 | -9 cents |
| Western Australia | $1.78 | $1.75 | -10 cents |
| Tasmania | $1.91 | $1.89 | -5 cents |
| Australian Capital Territory | $1.88 | $1.86 | -6 cents |
| Northern Territory | $1.95 | $1.90 | -4 cents |
Additional insights:
- Western Australia has experienced the steepest decline in fuel prices.
- Despite being more isolated, Tasmania and the Northern Territory continue to have the least competitive pricing.
- Urban competition in NSW and Victoria has helped push rates lower faster.
Why Have Petrol and Diesel Prices Dropped?
Several domestic and international factors have contributed to this welcome dip in fuel prices:
Global Oil Market Stabilisation
- Crude oil prices have fallen below $75 USD per barrel, a key psychological threshold, due to easing tensions in oil-producing regions and higher-than-expected reserves.
- OPEC+ production stability has reassured global supply chains, reducing pressure on downstream costs.
Stronger Australian Dollar
- A modest rise in the AUD to USD exchange rate has lowered the cost of oil imports, directly impacting wholesale fuel prices in Australia.
Retail Discounting Cycles
- Many fuel retailers are in the “discount” phase of the fuel price cycle, especially in competitive urban markets where prices fluctuate every few days.
Improved Refinery Margins and Supply
- Domestic refineries and bulk importers are reporting improved production efficiencies, contributing to cost reductions at the retail level.
How Consumers Can Benefit from Lower Fuel Prices
With prices dipping, now is an excellent time to fill your tank, but smart drivers can maximise savings even further.
Here’s how to make the most of the reduced prices:
- Use price comparison apps like FuelCheck NSW, PetrolSpy, or GasBuddy to locate the cheapest stations near you.
- Fill up during low points in the fuel cycle – usually Tuesdays or Wednesdays in major cities.
- Join loyalty programs (e.g., Woolworths Rewards or Flybuys) that offer per-litre discounts at partnered fuel stations.
- Buy from independents, which often undercut major brand prices in outer suburbs and regional towns.
- Check if you qualify for regional fuel subsidies, especially in remote NT or WA locations.
Cheapest Locations to Buy Fuel in June 2025
Based on real-time tracking and industry reports, these areas currently offer the lowest average fuel prices:
Petrol:
- Dandenong (VIC) – $1.78/L
- Blacktown (NSW) – $1.77/L
- Salisbury (SA) – $1.76/L
- Joondalup (WA) – $1.75/L
Diesel:
- Morley (WA) – $1.72/L
- Elizabeth (SA) – $1.74/L
- Logan (QLD) – $1.75/L
- Penrith (NSW) – $1.76/L
Note: Prices are dynamic and may fluctuate based on daily cycles. Always verify current rates via fuel monitoring apps before refuelling.
FAQs for Fuel Prices Reduced
Q1: Are fuel prices the same across all petrol stations in a city?
A: No. Prices vary depending on the suburb, competition, brand, and location (highway vs. city). Use comparison tools to find the best deal nearby.
Q2: How often do fuel prices change in Australia?
A: In metro areas, prices change daily or multiple times per week based on a pricing cycle. In regional towns, prices remain stable for longer periods.
Q3: Will prices continue to fall in the coming weeks?
A: While trends are favourable, prices are influenced by global oil markets, currency rates, and domestic demand. Watch the crude oil index and RBA forecasts for clues.
Q4: Why are prices higher in some states despite the national reduction?
A: State fuel taxes, supply costs, and logistics challenges influence pricing. Remote areas typically pay more due to transport and storage costs.
Q5: Can I get government rebates or discounts on fuel?
A: Some territories offer regional transport subsidies or concessions. Check with your state’s transport department or Service Australia for eligibility.
Q6: How can I monitor price changes in real time?
A: Use official government portals like FuelCheck (NSW), MyFuel NT, or third-party apps like PetrolSpy and MotorMouth.
Q7: Are diesel prices expected to remain lower than petrol?
A: Diesel is usually cheaper to refine but is subject to different demand cycles. In farming and freight-heavy seasons, diesel prices may spike independently.
The reduction in petrol and diesel prices across Australia from June 3, 2025, comes as a timely and much-needed cost relief for drivers nationwide. As global oil markets cool and local competition intensifies, Australian consumers are finally seeing tangible savings at the pump. With prices at a seasonal low, this is the perfect time to refuel smartly, plan longer trips, or adjust logistics strategies for businesses.
