NSW Fuel Prices Show 117 Cent Spread and Motorists Should Be Asking Questions

*By Tom Walker | 27th January 2026 10:15am AEDT*

This week's fuel price data from New South Wales uncovers some striking patterns that deserve closer scrutiny. With diesel prices climbing 3 cents overnight to an average of 182.9 cents per litre, and a remarkable 117 cent spread between the cheapest and most expensive stations in the state, there are legitimate questions about why such enormous variations exist.

Digging deeper into the numbers reveals that motorists who do their homework could be saving more than a dollar per litre compared to those who simply pull into the nearest servo. That's not a rounding error. That's the difference between paying $76 and $135 to fill a standard 50 litre tank.

The Western Sydney Advantage Continues

Once again, Sydney western suburbs emerge as the place to fill up if you want to keep more money in your pocket. Smithfield continues to offer some of the lowest fuel prices in the state, with diesel available from 159.5 cents per litre. The suburb's three major stations maintain tight pricing, with a spread of just 3.4 cents between them.

Granville presents an even more unusual situation. All three stations in the area are pricing diesel at exactly 164.5 cents, with zero variation between them. While uniform pricing might seem convenient, it raises interesting questions about competition in the area.

Fairfield motorists can find diesel from 162.5 cents, though the 13.4 cent spread across four stations means shopping around still pays dividends. Similarly, Auburn offers prices starting at 164.5 cents with a modest 5.4 cent variation.

Regional NSW Shows Mixed Results

Ingleburn in Sydney's south west has six stations with prices ranging from 159.5 to 177.9 cents. That 18.4 cent spread means the station you choose could cost you an extra $9 on a full tank.

Port Kembla on the South Coast offers competitive pricing starting at 157.9 cents, while Batemans Bay further south shows remarkable consistency with just a 1 cent spread across its three stations.

The story is less encouraging for motorists in Kelso near Bathurst, where the 27 cent spread between cheapest and dearest means being caught at the wrong station could cost you significantly more. The cheapest option at 155.9 cents represents genuine value, but the most expensive at 182.9 cents sits well above the state average.

Why the 117 Cent Spread Matters

The variation between NSW minimum price of 152.9 cents and maximum of 269.9 cents is not something motorists should simply accept. While geographic factors, transport costs and local competition all play a role, a spread this large suggests pricing decisions that have little to do with the cost of supply.

For comparison, Victoria shows a much tighter 49.1 cent spread on diesel, while Western Australia sits at 77.9 cents. The fact that NSW has a spread more than double Victoria's warrants examination.

The State by State Picture

Across Australia, diesel pricing this week shows notable regional differences. WA actually saw prices dip slightly, down 0.6 cents to average 180.5 cents. Meanwhile, Victoria held steady at 182.9 cents, matching the NSW average.

Tasmania averages 187.1 cents with an 84.1 cent spread, while the Northern Territory continues to show the most extreme pricing, averaging 236.1 cents with a staggering 236.3 cent spread between cheapest and most expensive.

Practical Steps for NSW Motorists

Armed with this information, motorists can make informed decisions and avoid paying more than necessary. Here's what the data suggests:

First, if you're in Sydney, the western suburbs consistently offer better value than inner city or eastern suburbs. Planning your fill up around trips to Smithfield, Fairfield, or Auburn could save you hundreds of dollars annually.

Second, use real time price comparison tools. The fact that Granville has identical pricing across all stations while neighbouring suburbs show significant variation demonstrates that prices can change quickly and unpredictably.

Third, consider the timing of your purchases. The 3 cent jump in NSW diesel overnight shows that prices can move substantially in 24 hours.

Finally, don't assume regional areas are always more expensive. Port Kembla and Kelso both have stations undercutting metropolitan averages, though the wider spreads mean you need to choose carefully.

The Bottom Line

A 117 cent spread between cheapest and most expensive fuel in NSW is not a minor inconvenience. It represents a system where informed consumers can save substantially while others pay premium prices for the same product. Whether you're filling up in Smithfield at 159.5 cents or somewhere charging 269.9 cents, you're buying the same diesel that came from the same refineries.

The variation between states, between suburbs, and between stations on the same street raises questions that go beyond simple market dynamics. Motorists deserve transparency about why these differences exist and what can be done to ensure fair pricing across the board.

For now, the best defence is knowledge. Check prices before you fill, plan your routes to include cheaper areas, and don't accept high prices simply because a station happens to be convenient.