The consumer watchdog is urging motorists to shop around to get the best price at the bowser.

There are reports several outlets are selling for as much as $1.60 a litre despite the average price of petrol around Melbourne sitting at $1.20 a litre.

Chairman of the Australian Competition and Consumer Commission, Rod Sims, urged motorists to check the RACV app.

Mr Sims said the price discrepancy wasn’t justifiable.

“It’s not illegal, but make sure you don’t buy from them,” he said.

“The average price in Melbourne is $1.20 a litre, there are some selling around $1.10.

“Anybody charging over $1.40 – avoid them.”

He discouraged naming and shaming individual outlets.

While there’s some tension around price cycles and global oil prices coming down, he said drivers should shop around for the best price.

“I really think we will get the benefit and is there now, if people want to shop around.”

Press PLAY to hear more on 3AW Mornings