Warrnambool's LPG prices are about 20 cents a litre more than at Melbourne outlets.
RACV has called on south-west LPG outlets to pass on the lower cost of gas to match Melbourne's price cut at the pump.
June's contract price for LPG has dropped 5.5 cents per litre less compared with prices in May, cutting Melbourne LPG prices to about 65 cents per litre.
However, Warrnambool prices were still between 79.9 and 82.9 cents along Raglan Parade yesterday.
RACV vehicle engineering manager Michael Case said higher LPG costs in regional areas were an unfair penalty to country motorists.
Mr Case said Warrnambool's average LPG price peaked at 87 cents a litre from March through May, reaching an average maximum of 87.9 in Melbourne during March.
"The average price in Warrnambool and Colac is 83 cents, which is down but still too high, given the June contract price for LPG has dropped 5.5 cents per litre," he said.
"Whilst regional prices can normally be a little higher than metropolitan prices, 20 cents per litre is really disadvantaging motorists just because they live in regional areas.
"RACV believes LPG outlets should be passing on lower cost of LPG in regional areas as well as Melbourne. "It can be a bit slow to be passed on, but what we're seeing here is it's slower in regional areas.
"This time it's been particularly high for some time and now there is some relief, so we should be seeing some faster drop in LPG prices in regional areas." Mr Case said RACV had received phone calls from regional members who had noticed an increase in LPG prices at some country service stations compared with city prices and were concerned about the difference.
The LPG price cycle is based on an international benchmark which changes monthly, unlike the unleaded and premium fuel cycle which usually changes every 10 to 12 days.
