The average cost of regular unleaded fuel in Mudgee on Thursday morning was 114.2 cents a litre which is well above what motorists should be paying, NRMA spokesman Peter Khoury says.

"We want to see prices at around $1 a litre and anywhere that's in the teens [such as in Mudgee] is too much," he said.

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"They are taking advantage of motorists who have little choice."

While the average cost in Mudgee was 114.2, the cheapest unleaded on offer was at Caltex and Shell where it was 102.9 cents a litre.

By comparison unleaded fuel in other Central West locations was: Bathurst 101.7 cents (cheapest 91.7), Orange 101.7 (cheapest 97.5), Lithgow 103.9 (cheapest 92.9) and Dubbo 113.4 (cheapest 108.9).

While unleaded fuel is more expensive in Mudgee, Mr Khoury said prices have actually dropped by 34.5 cents a litre in the past six weeks.

Drivers in regional locations may never get fuel as cheap as in Sydney due to the lack of competition, but Mr Khoury said service stations were still charging way too much.

"The benchmark prices and the wholesale prices are falling and none of these places are passing these falls on to their customers," he said.

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"It's got to be better because oil prices are at a 20-year low.

"The one place motorists should be getting relief now is at the bower."

Looking ahead, Mr Khoury said motorists in the region should expect to see further drops in fuel prices.

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"I'd expect to see further drops in coming weeks," he said.

Mr Khoury urged motorists in Mudgee to play their part in supporting retailers who provide cheaper fuel.

"Get on the NRMA app and find the cheapest place and go and fill up there and that will force the others [service stations] to be more competitive," he said.