Canberra drivers are copping a severe hit at the bowser this week, with regular unleaded soaring to an average of $2.10 per litre following the end of the Federal Government's temporary fuel excise discount.

The result is ACT motorists are currently paying more for petrol than almost anywhere else in Australia.

How the capitals compare

Prices in the nation's capital have rocketed from a low of $1.60 in late June to today’s $2.10 average.

That spike pushes Canberra past nearly every other state capital, trailing only Darwin's $2.17.

Premium 98 unleaded is over $2.38 in most stations across the ACT, and diesel at over $2.50.

Hobart is in third place, paying $2.08, followed by Adelaide at $2.06 and Melbourne at $2.04.

In Sydney, prices have jumped from $1.50 in late June to today's average of $2.00.

The cheapest city is Perth, where the average is $1.96.

What's next?

The government cut the excise on 1 April to 32 cents per litre - down from 52.6 cents - to relieve pressure on motorists caused by the Iranian conflict's shocks to the global oil market.

On 1 July, the excise partially came back by 16 cents per litre, before the relief ended fully on Monday, 3 August and the excise returned to its full indexed rate of 53.7 cents per litre.

Treasurer Jim Chalmers defended the move, stating the temporary relief - which cost the budget $2.9 billion - had done its job.

“It was never the government’s intention for that to be permanent," he said.

"It’s done a really important job, but we can’t afford to continue it forever."

Regular unleaded petrol prices in Canberra are averaging $2.10 per litre. Photo: James Coleman.

Mr Chalmers also wrote a letter to Australia's consumer watchdog, asking for increased scrutiny on fuel retailers to prevent gouging as prices adjust.

The Coalition has hinted hey won't take any future fuel excise cut to the next election either.

Instead, acting opposition leader Jane Hume said the government should have found offsets in the budget to pay for it “because reducing the fuel excise is an expensive exercise”.

Is there any way for relief?

The NRMA expects prices to gradually rise for a few days yet due to recent jump in the wholesale figure by 17 cents per litre.

“We’d been saying for some time it would be gradual, and we’d see a small adjustment on Monday morning – and that's exactly what we’ve seen," spokesperson Peter Khoury said.

"Prices will continue to go up with that excise; city to city, state by state, the capital cities have all gone up by about three or four cents." 

He added a drop in the price of crude oil this week to $80 a barrel could filter some relief through (it was $120 in April).

The NRMA suggested motorists consider using cheaper fuels - if their cars allow - to save serious dollars.

"The gap between premium 98, the most expensive fuel on our market, and E10, the cheapest, is now as wide as 30 cents a litre.

"That’s a huge difference – about a $16.50 saving on a standard 55-litre tank if you’re buying E10. Most Australians today are driving cars that don’t need 98.”