Australia’s Costliest Capital for Fuel Faces Volatile Price Cycles
Brisbane has been recognized as the costliest capital city in Australia for fuel, continuing a three-year trend. The state’s motoring body, the RACQ, released an annual report indicating that Brisbane recorded the highest average price for unleaded fuel in 2025. The average price in Brisbane was 185.2 cents per litre (cpl), surpassing the second-ranked city, Adelaide, which averaged 173.8 cpl.
Fuel Price Trends in Brisbane
According to Ian Jeffreys, RACQ’s principal economic and affordability specialist, the pattern of fuel prices has remained consistent in Brisbane for several years. “We are dealing with sort of like a legacy market,” Jeffreys noted during an interview with ABC Radio Brisbane.
Interestingly, the average petrol price in Brisbane decreased by 9.3 cpl from the record highs experienced in 2024.
Cheapest and Most Expensive Locations
The RACQ report conducted an analysis of fuel prices across various suburbs in Brisbane. Kuraby emerged as the most economical suburb for fuel in 2025, with an average price of 162.8 cpl. In contrast, Clayfield, located 25 minutes from Kuraby, recorded Brisbane’s highest average price at 200 cpl.
- Cheapest suburb: Kuraby – 162.8 cpl
- Most expensive suburb: Clayfield – 200 cpl
Jeffreys emphasized that motorists could benefit from shopping around, as the price differences between suburbs could reach nearly 40 cpl.
Diesel Prices and Market Dynamics
Brisbane also holds the title for the second-highest average diesel price in Australia, recorded at 189.6 cpl. This figure represents a slight improvement from 2024’s average of 193.6 cpl.
Several factors contribute to Brisbane’s high fuel prices. Firstly, Jeffreys highlighted differences in price cycle patterns. “Our price cycles are longer; the jumps are higher; the cheap phases are shorter,” he explained. Additionally, Brisbane has a lower percentage of independent service stations compared to other capital cities, limiting price competition.
Need for Market Regulation
Industry experts advocate for an independent investigation into the significant variations in fuel prices across Australia. Jeffreys acknowledged that while new independent service stations are emerging in Brisbane, progress is too slow. The establishment of these stations incurs high costs, hampering the market’s ability to adjust.
In light of these findings, the RACQ is calling for regulatory measures to address unjustified price increases. “We do need to consider some sort of intervention and some government regulation,” Jeffreys asserted. Discussions with the Queensland government are currently underway to improve the situation.
Brisbane continues to be one of the nation’s most expensive and unpredictable cities for fuel, and the current market dynamics are not favorable for local motorists.
