An international oil supply crunch and military tensions between Russia and Ukraine have been attributed as the reasons behind the booming costs, which are not expected to drop in the near future.

NRMA spokesperson Peter Khoury said the average cost of regular unleaded petrol in Wagga is currently sitting at about $1.69, nearly ten cents higher than the average at the start of January.

"Wagga's average has gone up and all of the averages across the state are going up because the wholesale price is the highest on record," he said.

"Service stations are paying almost $1.65 per litre and many parts of the country have broken their record in terms of average petrol prices.

"Long story short - there's no good news."

According to the Fuel Price Australia website, the most expensive service station in Wagga at the moment is the Coles Express on Edward Street, which is selling Unleaded 91 for $1.79 per litre.

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The cheapest service station in the city is Wagga Fuel on Docker Street where Unleaded 91 is available for $1.60 per litre.

Shahzaib Khawaja, franchise manager of Wagga Fuel, said the business is "not even breaking even" on petrol at the moment but is keeping the price low in a bid to attract customers to the store.

"We have been trying to keep our fuel at the lowest price because we want to gain more customers and foot traffic," he said.

"We try to keep locals happy and gain them as a shop customer instead of making a fortune on the fuel, we're not even breaking even on the fuel to be honest."

Mr Khawaja said this tactic has been effective so far.

The impact of the rising petrol costs in regional areas has been further exacerbated by the average cost of diesel overtaking unleaded fuel for the first time in six years.

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