Western Sydney Petrol Prices Undercut State Average by 20 Cents While Coastal Suburbs Pay Premium

*By Tom Walker | 23rd January 2026 8:15am AEDT*

This week's fuel price data across New South Wales reveals a striking pattern that deserves closer examination. While the state diesel average sits at 183.1 cents per litre, motorists in western Sydney are consistently finding prices well below that figure, and the question is why coastal and inner city drivers are paying so much more.

Digging deeper into the numbers, the variation between suburbs is remarkable. Smithfield in Sydney's west currently holds the crown for cheapest diesel in the state, with prices as low as 159.5 cents and an average of just 161.6 cents across three stations. That represents a saving of more than 21 cents per litre compared to the state average.

The Western Suburbs Advantage

The pattern repeats across multiple western Sydney suburbs. Granville shows diesel at 164.5 to 165.9 cents, with an impressively tight 1.4 cent spread between stations. Fairfield sits at 162.5 to 175.9 cents, while Auburn ranges from 165.9 to 177.9 cents.

Ingleburn in Sydney's southwest offers six stations with prices starting at 163.5 cents, and Marsden Park in the northwest growth corridor shows prices between 165.9 and 169.9 cents.

This raises some interesting questions about pricing strategies. Why are western suburbs consistently 15 to 20 cents cheaper than the state average? The concentration of commercial and industrial traffic in these areas likely drives fiercer competition, but motorists in other parts of the city might wonder why they're paying a location premium.

Regional NSW Tells a Different Story

Moving outside Sydney, the price transparency picture becomes more complex. Kelso near Bathurst shows one of the widest spreads in the state at 27 cents, with prices ranging from 155.9 cents to 182.9 cents. That 155.9 cent price is among the cheapest in NSW, yet some drivers in the same town are paying 27 cents more.

Batemans Bay on the South Coast presents a different scenario with tight pricing between 169.9 and 170.9 cents across three stations. Port Kembla near Wollongong shows similarly competitive pricing at 170.9 to 172.9 cents.

The coastal tourist areas and regional centres show less of the aggressive discounting found in western Sydney, which makes sense given lower volumes and less competition, but also highlights the geographical lottery of fuel pricing.

State Comparisons Reveal National Patterns

Comparing NSW to other states, the 117 cent price spread between cheapest (152.9 cents) and most expensive (269.9 cents) diesel stands out. That spread is more than double Victoria's 52 cent range, though less extreme than the Northern Territory's extraordinary 236.3 cent spread.

Western Australia shows a spread of 82.6 cents with diesel averaging 180.4 cents, marginally cheaper than NSW's 183.1 cent average. Tasmania sits higher at 187.2 cents average with an 84.5 cent spread.

The data suggests NSW motorists face greater pricing inconsistency than their Victorian counterparts, where the tighter spread indicates more uniform pricing strategies statewide.

What This Means for Motorists

For Sydney drivers, the message is clear: heading west for fuel can save substantial money. A 50 litre tank at Smithfield prices of 159.5 cents versus the state average of 183.1 cents represents a saving of $11.80 per fill.

The data also highlights the importance of checking prices before filling up, particularly in regional areas where prices can vary significantly within the same town. A closer look reveals that competitive pricing exists in unexpected places, and motorists who use real time price comparison tools can avoid paying unnecessary premiums.

The price variations also raise broader questions about market transparency and competition. While wholesale fuel costs are broadly similar across metropolitan areas, the retail margins clearly differ substantially between locations.

Armed with this information, NSW motorists can make informed decisions about where to fill up. The western Sydney servo isn't just convenient for some drivers, it's a genuine money saver that other parts of the city haven't matched.

*Prices current as of 23rd January 2026. Data sourced from official government APIs and community verified prices.*