The motoring group compared prices across Victoria's metropolitan and regional areas during a 12-month period - destroying the myth that metro customers get the best deals.
Of the 27 regional towns surveyed, nine were cheaper than Melbourne’s average price of $1.413 per litre during the last financial year.
With Benalla joining Ballarat on top of the list of the most affordable locations to fill up.
The average petrol price in Benalla in that period was $1.328 per litre.
By contrast, Melbourne's lowest prices were found in Maidstone where motorists paid on average $1.379
RACV manager of vehicle engineering Michael Case said the report shows that simply by living in a different suburb or town motorists can save a substantial amount on fuel.
“At almost 10 cents a litre, that’s $5 on a tank of fuel for an average family car. It adds up," Mr Case said.
The price difference can amount to an annual saving of $150, based on a car using 1500 litres a year to travel 15 000 kilometres.
Gradual rationalisation of petrol stations in some areas has resulted in softer competition and therefore higher prices.
At the same time, some petrol retailers rely on sales in their onsite shops to boost profits and are prepared to cut margins on petrol to attract customers into the store.
Others with high volumes at the pump could more easily discount petrol prices.
RACV senior vehicles engineer Nicholas Platt advised Melbourne motorists to check fuel prices in regional centres before heading out of town, as there could be cheaper petrol along their route.
“People assume country Victoria is always more expensive and that is not necessarily the case,” Mr Platt said.
Compare fuel prices across Victoria here.
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