A short drive from Redfern, a Lewisham service station is charging close to $3 a litre (299.6 cents/litre) for petrol, reflecting the broader rise in fuel prices across Sydney.
The family-run station in Lewisham has seen prices climb while customer demand drops. The business, once known for lower prices, is now selling some fuel below cost as sales fall from around 20,000 litres a day to about 2,000 litres.
Fuel pressure close to Redfern
The situation in Lewisham reflects broader fuel pressure across Sydney. It also shows that the strain seen across Australia is now visible close to Redfern, where rising costs are becoming harder to ignore.
Transport workers are already feeling the impact. A Sydney taxi driver saw weekly fuel costs rise by about $250 within a month, reducing earnings. The same kind of pressure may affect other workers who rely on driving for income.
At the same time, more commuters are adjusting how they travel. Reports cited an average increase of more than 47,000 daily trips on trains and metro services in recent weeks.
Global pressures behind local prices
The rise in Sydney fuel prices is linked to wider global supply issues. Panic buying in parts of Australia has led to some stations running out of fuel, especially in regional areas, adding pressure to supply chains.
These supply concerns are tied to disruptions in key oil shipping routes, including the Strait of Hormuz, which carries a large share of the world’s fuel supply.
Figures from the Australian Competition and Consumer Commission fuel monitoring update show petrol and diesel prices in Sydney rose sharply in early March, with the city recording the highest diesel prices among major capitals at one stage.
Small stations squeezed by rising costs
Independent service stations are particularly exposed during price spikes. Many smaller operators buy fuel at daily market rates, leaving them vulnerable to sudden increases in wholesale costs.
This means higher prices at the pump do not always reflect higher profits. In the Lewisham case, some fuel types were sold below purchase cost even as overall sales declined.
At the national level, the federal government has said fuel supply remains stable, while urging motorists not to panic-buy. Emergency fuel reserves have been partially released to support supply, although distribution delays may continue to affect availability.
Published 20-March-2026
