Thirty-six regional towns or shires in NSW had cheaper fuel than Sydney (122.9 cents) in 2020, according to the National Roads and Motorists' Association.

The Port Macquarie-Hastings zone held the twelfth cheapest fuel across the state at 119.4, while Port Macquarie itself ranked 85th at 126.23 cents.

Wauchope was ranked sixty-eighth at 125.4 cents, Coffs Harbour was 125.1 cents and Kempsey was 124.4 cents.

Enhance Service Station Kew owner Chetan Varsani said fuel prices don't seem to change often in regional areas.

"Generally the buy price for the station changes week to week but the customer prices are pretty stable. I've been here in the Camden Haven for five years and these are the best prices I've seen because there are so many new owners," he said.

"New petrol stations opening in the heart of Port Macquarie will impact Laurieton and Camden Haven area with people going to and coming from work. Most of my traffic is from the highway, locals from Kew and Kendall.

"Basically all of the Mid North Coast and North Coast fuel comes from the same source in Newcastle. Coffs Harbor and Grafton would come from Queensland. Sydney fuel would be sourced in Sydney.

"Stations buy through their branding companies, each branding company has a discount based on their volume but larger companies may not be as competitive as independents."

Fuel prices have dropped in Port Macquarie since the start of the new year with both new Mobil stations offering the cheapest unleaded petrol for 109.7 cents on January 19.

Independent stations at Gordon Street and Pacific Drive offered the next cheapest at 109.9 and 116.9.

BP was the dearest at 121.9 cents in Wauchope, 124.9 cents on Ocean Drive and 128.9 cents on the Pacific Highway.

The NRMA report indicated one third of the state offered fuel for cheaper prices than Sydney in 2020, despite some of those towns being up to 600kms farther from the fuel source.

Weddin Shire in the central west was the cheapest unleaded petrol price on average at 112.7 cents a litre throughout 2020, more than 10 cents cheaper than Sydney's average of 122.9 cents.

The shires or towns in NSW with the cheapest fuel in 2020 were weddin, Muswellbrook (116.7 cents), Tamworth (117 cents), Freemans Waterhole (117.4 cents) and Lithgow (117.4 cents).

The most expensive unleaded fuel in 2020 could be found at Central Darling (143.9 cents), Blue Mountains (139.4 cents), Bega (134.4 cents), Bourke (133.4 cents) and Parkes (133.2 cents)

NRMA spokesperson Peter Khoury said traditionally regional prices had been dearer than city prices, but Sydney's profit-rich price cycles of 2020 were higher than they should be.

"What this analysis shows us is that it was evidently cheaper in 2020 to not have a price cycle and that many regional locations with fewer service station options were still far cheaper than Sydney, which is meant to be the nucleus of petrol price competition," Mr Khoury said.

"With interstate and overseas travel plans being replaced by local trips, it's more important than ever for motorists in New South Wales to be aware of fuel prices on the road.

"It's not uncommon for motorists to fill up at a service station, only to find a cheaper price in the next town.

"Using the my NRMA App before you fill up is the single best tool at motorists' disposal to beat unnecessarily high petrol prices."

The NRMA urges people to arm themselves with knowledge and to find the best price of fuel in their area. For more information or to check the cheapest fuel in your area visit https://www.fuelcheck.nsw.gov.au/app