Fuel prices in Cowra have surged by almost 30 per cent in just over a week, with motorists now paying more than $2 a litre at the pump.

Many residents are now asking the same question: how can it happen, and why are prices so high?

Federal Member for Riverina Michael McCormack raised the issue in Federal Parliament on 4 March, highlighting the steep prices being paid by motorists in Cowra compared to other towns.

“In Cowra, in Central Western New South Wales, the price of E10 has gone up to 207.9 cents a litre,” Mr McCormack said last week.

“The price of diesel is 219.9.

“I mean, that’s more than $2 a litre for diesel."

According to the NSW Government’s Fuel Check app on March 6, the cheapest E10 in Cowra is currently around 207.7 cents per litre, while several other stations are all charging 207.9 cents per litre.

However, in nearby towns the price difference is significant.

Just 25 minutes away in Canowindra, E10 is selling for 188.9 cents per litre, while unleaded 91 is priced at 191.9 cents.

Cowra Mayor Paul Smith said the increase has been sudden and difficult to explain.

“On the 25 February E10 was $1.79.9, which makes what we’ve got right now incredible,” Mr Smith said.

“Yesterday [March 5] it was 207.9, which is a 30 per cent increase in eight days, and it was the same within a cent at every service station in town.”

Diesel prices in Cowra have also climbed, with many stations charging around 219.9 cents per litre.

Mr Smith said the price consistency between service stations raised questions for many residents.

“You can’t tell me that they’ve all got new fuel coming out of the Middle East in eight days, and the war’s only been on for four,” Mr Smith said.

“So one, we’re getting ripped off, but two, we’re always 20 cents a litre dearer than the surrounding villages and towns.”

Tensions in the Middle East, particularly around the Strait of Hormuz shipping lane, have been blamed for global oil price pressures, but industry experts say increases usually take time to reach Australia.

The NRMA says it typically takes between seven and 10 days for higher oil prices to flow through to local petrol prices.

“Those prices are extraordinary,” Mr McCormack said in accordance to the prices in Cowra.

The price gap between regional centres has also raised concerns.

Mr McCormack said fuel in Wagga Wagga was significantly cheaper when compared with Cowra.

“In Wagga Wagga the price is significantly cheaper,” Mr McCormack said.

“E10 is 167.9 and diesel was 175.9.”

“It does go up from there, but it’s nowhere near over $2 a litre that they’re paying in Cowra,” he said.

In federal parliament last week it was also revealed Australia only has between 32 and 36 days of fuel supply onshore, compared with some countries that maintain up to 90 days of stock.

Mr McCormack said rising fuel prices would place additional pressure on regional communities already dealing with cost-of-living challenges.

“People in the Riverina electorate and across the country are already suffering from a cost-of-living crisis under the watch of this Labor government, they can’t afford to cop another hit to the hip pocket from unruly fuel retailers unnecessarily price gouging,” he said.

He also stressed how vital fuel is for regional economies.

“In regional areas not only is energy the economy but so is fuel, because it powers cars and trucks and anything else to enable people to get to places,” Mr McCormack said.

Mr Smith said the issue had been widely discussed in the community, with many residents choosing to buy fuel elsewhere.

“Virtually everybody I know, if they leave town and they’re on their way back, they fill up somewhere else and don’t fill up in Cowra,” Mr Smith said.

Mr McCormack is now urging the federal government and the Australian Competition and Consumer Commission [ACCC] to investigate whether fuel retailers are raising prices too quickly.

“More needs to be done to ensure service stations do not take advantage of consumers and the ACCC needs to keep a close eye on this situation and punish those who do the wrong thing,” he said.

Mr Smith said he simply wants answers for the Cowra community.

“I’m not accusing anybody, but I’m asking the question, how can it happen?” he said.