Motorists in the Hunter region have received some welcome news, with new data revealing several local areas offered some of the most affordable fuel prices across New South Wales in 2025. The annual ranking, released by the NRMA, placed the town of Muswellbrook as the fifth cheapest location in the state for regular unleaded petrol.
Hunter Towns Top the Affordability Charts
The NRMA's comprehensive assessment of fuel prices throughout last year showed a clear trend: regional centres with strong competition can deliver significant savings at the bowser. In Muswellbrook, the average price for regular unleaded across the entire year was just 172.1 cents per litre.
The town also performed well for diesel, ranking sixth in NSW with an average of 180.3 cents per litre. Other Hunter locations featured prominently in the diesel rankings, with Freemans Waterhole taking third place (179.6 cpl) and the Upper Hunter region coming in fourth (179.7 cpl).
How the Rest of the Hunter Fared
While Muswellbrook led the local pack, other familiar areas provided relatively affordable fuel. For unleaded petrol, the Upper Hunter ranked 12th (173.2 cpl), Freemans Waterhole was 14th (173.6 cpl), and Maitland made the top 25 with an average of 175.8 cents per litre.
Newcastle, the region's largest city, came in 42nd for unleaded at 178.0 cents per litre and 30th for diesel at 184.2 cents per litre. Notably, every Hunter area analysed had an average annual price below $2 per litre for both fuel types.
Why Competition Drives Prices Down
NRMA spokesperson Peter Khoury said the data clearly demonstrates the power of local competition. "Oberon proves beyond doubt that a small cluster of competitive service stations deliver huge savings for motorists," Mr Khoury stated, referencing the small Central Tablelands town which was the state's cheapest for unleaded.
He pointed to Muswellbrook as a prime example within the Hunter. "It's similar in Muswellbrook, there are multiple service stations on the highway, lots of trucks go through it, there's lots of traffic," he explained. This activity fosters a competitive environment that benefits all drivers.
However, Mr Khoury noted a concerning trend in larger cities, where some areas have begun to mimic the volatile price cycles seen in Sydney, which ranked a lowly 76th. "Price cycles are not always favourable to motorists," he warned. "People are being exposed to higher prices for longer."
He also offered a sobering comparison, indicating that bigger cities in other states, like Adelaide and Perth, remain "consistently way cheaper than Newcastle."
The 2025 ranking is the first of its kind released by the NRMA, providing a new benchmark for fuel price transparency. Mr Khoury expressed surprise at some results, stating, "We were quite surprised by the results. It further demonstrates what we have said: each town is its own market."
Looking ahead, there may be more relief on the horizon. Mr Khoury observed that the pronounced price cycles seen in some areas began to wane towards the end of 2025, which could lead to cheaper average prices. The full impact of this shift, however, will not be clear until next year's data is compiled.
For now, Hunter drivers can take solace in knowing that several of their local towns are among the most fuel-friendly in the state, proving that regional Australians are not necessarily subject to the highest prices at the pump.
