ACT drivers have been paying on average 8¢ a litre more at the pump than drivers in the country's five largest cities.
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Most Australian motorists benefited from a fall in retail petrol prices in the September quarter but not in Canberra, the Australian Competition and Consumer Commission's eighth report into the Australian petroleum industry revealed.
Prices were down in the September quarter by 3.8¢a litre in Sydney, Melbourne, Brisbane, Adelaide and Perth.
However Canberra, Hobart and Darwin prices remained relatively more expensive.
Average retail prices between June to September in Canberra (122.4¢ a litre) were 8.2¢ higher than in the five largest cities, which averaged 114.2¢ a litre. In Hobart they were 124.6¢ a litre, or 10.4¢ higher and in Darwin (115.9¢ a litre) they were 1.7¢ higher.
ACCC chairman Rod Sims said prices in the majority of capital cities were lower than the previous quarter and 7.5¢ lower than the annual average of 121.7¢ a litre in 2015-16.
The international refiner margin (the difference between the price of refined petrol and the price of crude oil) is now close to the annual average refiner margin of US$8 a barrel over the past 20 years.
"International factors continue to strongly influence the price at the bowser. A drop in refiner margins in the last quarter has helped to push prices down locally," Mr Sims said.
However, price cycles were not felt as dramatically in the ACT and regional prices remained higher.
"Canberra consumers are paying perhaps more for petrol than they should," he said. "You expect it to be a little bit higher, but not that much."
He said price average gross margins in other capital cities was 8.8¢, whereas in Canberra petrol retailers average gross margin was 14.5¢.
The report pointed to factors such as low levels of local competition, lower volumes of fuel sold, as well as distance and location factors pushing regional pump prices higher.
"It is a very frustrating issue for Canberra motorists," he said. "Canberra does have extremely high prices. It is clearly a result of a lack of discounters in the market, the independents that do the discounting."
He urged motorists to seek out the discounters and apply consumer pressure to service stations with peak price fuel.
PetrolSpy figures for Canberra show the price of Unleaded and E10 fuels jumped by almost 10¢ in mid October from 117¢ to 127¢ a litre.
The cheapest price for unleaded fuel on Monday was 111.7¢ a litre at Costco Canberra Airport with service stations across the capital offering the peak price of 129.9¢ a litre.
