3 ways you could save hundreds on fuel each year

When it comes to getting fuel, there are two types of people. Those who will drive further and go out of their way to score a cheaper price. And those who fill up their tank at the same nearby station every time, regardless of the cost.

Unfortunately, I fall into the latter camp. I know it’s not exactly the most thrifty thing to do, but filling up always seems to slip my mind until I see my tank is nearly empty.

But with fuel prices on the rise, I’m hoping to rethink my habits. Fuel prices dropped in April after the government decided to halve the fuel excise, but they’ve slowly increased since then and are now over $2 a litre in many of Australia’s capital cities. Last week, petrol was averaging $2.03 a litre in Sydney, $2.05 a litre in Melbourne and $2.06 a litre in Brisbane, according to the Australian Institution of Petroleum.

So I’ve asked Canstar’s researchers to crunch the numbers to find out how much I could save if I tried out three new habits.

1. Using a fuel app

One of the easiest ways to save money on fuel is to use a fuel app. These apps show you up-to-date fuel prices, so you can find out who is offering the cheapest deal in your area.

Canstar’s researchers found fuel prices could vary by about 13.2c/L on average within one local government area, based on filling up with unleaded petrol in New South Wales or Queensland in March.

For a large family car with an average tank capacity of 63 litres, that could equate to a saving of about $8.30 per tank and $115 per year. That’s assuming you travel 12,100 kilometres, which is the average distance travelled by vehicles in a year according to data from the ABS. This would require a total of 871 litres of fuel.

Many state governments have their own apps, including FuelCheck (NSW), FuelWatch (WA), MyFuel NT and FuelCheck TAS.

There are also third-party apps like MotorMouth, Fuel Map, GasBuddy and Petrol Spy, as well as apps from motoring organisations like NRMA and RACQ. Some states, like Queensland and South Australia, have fuel transparency schemes so petrol stations are required to share their price data.

Fuel apps can also show you where you are in the current price cycle. Fuel prices usually move in regular cycles where they go down for a period of time, before sharply increasing. So if prices seem to be at a high, it might be better to hold off on filling up and wait until prices drop if you can.

Is it worth driving further for cheaper fuel?

A recent survey by Canstar Blue found that around one in three of us would be willing to drive a little bit further to save money on fuel. So if you find a cheaper deal but the station is a few k’s away, is it worth it?

The answer to this will depend on your car and its fuel consumption, as well as how far you are driving and the cost of fuel.

For example, a large family car consumes about 7.2 litres per 100 kilometers (or 0.072 litres per kilometre) on average. Using an average standard unleaded price of 196.5c/L, that means it costs about 14 cents per kilometre travelled. So, if you drove an extra 10 kilometres for petrol, that would cost you about $1.40. To figure out whether it’s worth it, you’d need to weigh this up against how much you could save by getting the cheaper petrol. For example, if you could save 10c/L on fuel by driving that extra 10 kilometres, this could save you $6.30 to fill up your 63-litre tank in full. In this case, it could be worth it from a cost perspective to drive further. You’ll also need to make adjustments if you are filling up a partially full tank, rather than an nearly empty one.

Here’s how much it could cost you to drive an extra kilometre (in cents), based on different vehicle and fuel types:

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Source: Budget Direct, FuelCheck NSW, QLD Open Data Portal. Prepared by Canstar on 24/05/2022. Average fuel pump price is 202.9 c/L for standard diesel, 196.5 c/L for standard 91 unleaded and 207.3 c/L for premium 95 unleaded and is based on data from NSW and QLD for March 2022.  Average fuel consumption by vehicle class based on Budget Direct’s Car Range Statistics, which are based on the 100 top-selling cars in Australia in 2019 according to CarsGuide.

2. Using supermarket fuel discounts

Another way to save is by using supermarket fuel discounts. Both Coles and Woolworths offer a 4c/L discount on fuel if you spend $30 or more on groceries. You can redeem the Coles discount at Shell Coles Express stations and the Woolies discount at Ampol stations.

Coles Express also offers a further 10c/L discount if you spend $20 on eligible products in-store when you’re filling up. While we don’t recommend buying products for the sake of a discount, it could be worthwhile if you’re already planning on making the purchase.

For a large family car, Canstar found you could save $2.52 per tank with a 4c/L discount and $8.82 per tank with a stacked 14c/L discount.

While this may seem like a small saving, over time it can add up. For example, if you used a 4c/L discount each time you filled up, you could save about $34.84 per year. With a stacked 14c/L discount, you could save $121.94 per year. Again, this is assuming you travelled the average distance per year.

Terms and conditions apply for various supermarket fuel discount offers, and you can usually check a relevant website for details.

3. Using motoring club and other fuel discounts

Many motoring clubs also offer fuel discounts at selected petrol stations. NRMA offers its members a 3c/L discount on regular fuel and a 5c/L discount on premium fuels at participating Ampol and Caltex branded service stations.

RACQ offers members a 4c/L discount at participating Puma and Pacific Petroleum stations. RAC also offers a 4c/L discount at Puma and Better Choice to its members in WA, as well as participating Puma, Matilda, Choice and Mobil stations in other states. Lastly, RACT offers a 6c/L discount at participating United stations in Tasmania.

You can also get Coles Express discounts through CarSales.com.au, Linkt and the AFL Live Official App. CarSales currently offers an 8c/L discount on your first visit, followed by a 4c/L discount after that, if you add your car and its odometer reading to the CarSales app. If you have a Linkt toll account, you can get a 4c/L discount, which can be redeemed online or through the app. Footy fans can currently get a 4c/L discount via the AFL Live Official App.

These discounts can be stacked with the 4c/L shopping docket discount and the 10c/L spend in-store discount, so you could potentially save up to 18c/L per litre on fuel in some regions, subject to T&Cs. That means a large family car could potentially save up to $11.34 per tank and $156.78 per year based on the averages used above.

There’s also the 7-Eleven app that comes with a ‘Fuel Lock Feature’, letting you search nearby 7-Eleven stations and lock-in your price for a week.

So, there’s a few different ways you may be able to squeeze out a discount at the bowser, and if you’re able to adopt more than one method, you may be able to save yourself hundreds in the long run. Happy driving…

Cover image source: Vladyslav Starozhylov/Shutterstock.com