Diesel prices on the South Coast on 5 June 2026. Photo: Canberra Notice Board Group, Facebook.
It might soon be cheaper for Canberra motorists to drive to the South Coast, fill up the tank, and drive home again.
Okay, the situation isn’t quite that bad. But judging by the online reaction, plenty of drivers are wondering why diesel in places such as Mogo and Moruya is currently selling for less than they’re paying in the ACT.
Like, much less.
“Cheaper to drive down there and fill up and then drive back at this point … absolute joke,” one person wrote to the Canberra Notice Board Group on Facebook this week.
The discussion started after a member posted a screenshot of fuel prices from the South Coast and asked, “Is this a glitch? Or are the South Coast towns actually getting cheaper diesel than Costco Canberra?”
The images showed prices of $2.04 per litre at Costco, but $1.64 per litre at an Ultra-branded station in Mogo and an Enhance station in Tomakin.
Others were quick to pile on.
“They are literally the cheapest in southern NSW, including most of Sydney,” one wrote.
“Fuel has been cheaper at Moruya Liberty than Costco for at least six months.”
“I was down there last weekend. Diesel in Mogo was $1.75! We get ripped off here cause it’s assumed everyone is a public servant whose pay is high and guaranteed!”
The numbers suggest they’re not imagining things.
According to PetrolSpy, regular unleaded in Canberra is averaging about $1.73 a litre, down dramatically from a peak of around $2.60 in early April. Diesel is sitting closer to $2.20 a litre.
Petrol prices in the ACT from March to June 2026. Photo: Screenshot, PetrolSpy.com.au.
In Batemans Bay and Moruya, regular unleaded is currently around $1.68 a litre. Some Liberty stations are selling diesel for as little as $1.64 a litre – not much more than petrol.
So what’s going on?
NRMA spokesperson Peter Khoury said fuel prices have stabilised over the past month because Asian fuel markets, which heavily influence Australian prices, have largely stopped reacting to every headline.
“The unpredictability is stabilising, if that makes sense,” Mr Khoury said.
He said the regional benchmark for unleaded fuel, Tapis, has also fallen recently, while wholesale prices remain relatively low at $1.58.
As for why the South Coast can sometimes be cheaper than Canberra, there’s no single explanation.
“Each town is its own market,” Mr Khoury said.
“Canberra has been pretty competitive for a while. It’s probably on the higher end of the capital cities now, but certainly not to the extent it used to be, and certainly not like it was a year ago.
“And there are always some parts of the South Coast that are going to be cheaper while others aren’t. Sometimes you’ll see two towns within 20 minutes of each other, and they’ll have different average prices.”
Historically, fuel has often been more expensive in Canberra than in many other cities.
The Australian Competition and Consumer Commission (ACCC) has previously pointed to several factors, including fewer independent fuel retailers, less competition, Canberra’s distance from fuel refineries and the city’s relatively high average incomes.
Canberra has paid more for fuel than surrounding regional towns for years. Photo: James Coleman.
Many locals simply call it the “Canberra tax”.
The bigger concern for motorists, however, may be what happens next.
The temporary reduction in fuel excise ends on 1 July, with the tax returning to its normal rate of about 52 cents per litre.
Mr Khoury said that it will have an immediate impact on prices.
“When that does get reintroduced, average prices will go up about 36 cents a litre.”
Whether drivers rush to fill up in the final days of June remains to be seen.
“Well, I hope not,” he said.
But exactly how immediate the price rise is will depend on individual service stations and how much fuel they have left in their tanks.
“We saw when the excise was cut on 1 April, some service stations dropped prices immediately, others waited until they’d sold all their fuel.”
Original Article published by James Coleman on Region Canberra.
