While Newcastle and Singleton had among the most expensive average unleaded prices in NSW last week (127.4 cents per litre and 129 cents per litre, respectively) the cost of petrol is predicted to decrease in the coming weeks across the city.

Muswellbrook last week had the state's cheapest average unleaded price at 106.3 cents per litre, which is not expected to change dramatically over the Christmas break.

NRMA spokesperson Rebecca Page says the pricing forecast is "really good news", particularly for travellers who plan to hit the road for the festive season.

"In Newcastle, prices last week did spike earlier than in Sydney - those prices are now falling slowly," she said.

"We expect them to continue to fall into Christmas."

Ms Page said the NRMA believed there was "not a lot of evidence" that prices in Newcastle should rise beyond the mid 120s, at worst.

She said the Maitland area was a "unique market" and pointed to an average price of 115 cents per litre last Friday jumping to 122 cents per litre by Tuesday, and predicted that the cost of unleaded fuel there could climb into the high 120s.

Ms Page said motorists instead should look to check live price data and fill up at "very competitive" places like Muswellbrook.

"If you are travelling throughout the region you absolutely should not be paying those [high] prices," she said.

"It's been a pretty horrendous year for most of us, we don't need to be dishing over more money to the oil companies - we should be saving that money for under the Christmas tree."

According to the latest NRMA figures, Wollongong had the state's highest average unleaded petrol price last week followed by Singleton, Parkes, Newcastle and Bega.

The cheapest location for the week was Muswellbrook - which has held the top spot since mid-September - followed by Gunnedah, Nowra, Lithgow and Sydney.

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