Motorists have received some relief at the bowser, with the average price of fuel in Wagga down from 158.4 cents per litre on July 13 to 144.5 on Thursday.

Only an hour away in Temora, however, the average price of petrol is more than 10 cents less than in Wagga, with motorists there paying around 134.4 cents per litre to fill up.

The gulf is even wider between Wagga and Albury - with motorists on the border paying on average just 129.2 cents per litre.

Tumut motorists are faring even worse however. The average price of fuel in the town was 153.9 cents per litre on Thursday - more expensive than anywhere else in the state.

One Wagga motorist, Peter Simpfendorfer, is fed up with being ripped off that the pump.

"It's been going on for years," he said.

"I think it's just collusion by the petrol companies to keep the prices high - they're money hungry."

A lack of independent operators in the Wagga market has previously been highlighted by NRMA director Graham Blight as the reason for prices remaining consistently above average in the city.

One independent service station, the Silvalite Fuel Stop on Ashmont Avenue, was charging 132.9 cents per litre late on Thursday - more than 10 cents per litre cheaper than some of the chain service stations along the Sturt Highway in the middle of the city.

The Australian Competition and Consumer Commission (ACCC) has been directed by the federal government this week to monitor prices, costs and profits in the fuel industry over the next three years.

"I believe that competitive pressures alone are not sufficient to ensure efficient pricing and the protection of consumers in all retail fuel markets," Small Business Minister Bruce Billson said of the direction.

The ACCC will also have the power to place specific markets under the microscope in reviews that will target "perceived irregularities" in the fuel market or market dysfunction.

The watchdog will conduct a minimum of four investigations a year into specific geographic markets, specific products, or other issues of concern, Mr Billson said.

Member for Riverina Michael McCormack said petrol prices in Wagga were "unacceptable" and has written to ACCC chairman Rod Sims to express his concern at this situation.

"I can't understand why Albury prices are cheaper and consistently cheaper," he said.

Mr McCormack is hopeful the new direction issued to the competition watchdog will expose the rip-off occurring at the pump in Wagga.

"It will bring to the fore that Wagga and Tumut ... are paying consistently higher than other centres," he said.

"Freight cannot be the only factor for the high prices."

The ACCC previously held an inquiry into Wagga petrol prices in 2007 following community outrage, but more than seven years on, motorists are continuing to pay some of the highest prices for petrol in the state.

Sydney 121.6

Albury 129.9

Temora 134.4

Griffith 134.9

West Wyalong 137.9

Cootamundra 140.6

Leeton 141.9

Canberra 144.4

Wagga 144.5

Gundagai 146.9

Hay 148

Tumut 153.9