AA PetrolWatch – March 2007

Media Release: 3 April 2007

AA PetrolWatch – March 2007

Opportunity for lower prices lost

Petrol prices rose a total of eight cents per litre in the first half of March, with diesel rising four cents per litre. Prices ended the month on $1.56 per litre for 91 octane, and $1.00 per litre for diesel. In several locations, prices were discounted to $1.52 and 0.98c respectively during the last two weeks; notably Auckland, Manawatu, Wanganui, Masterton, Tauranga and the Hawkes Bay where prices were lower still, but nowhere in the South Island.

“We welcome local price competition, which doesn’t occur often, however on this occasion AA PetrolWatch figures showed the oil companies could afford to extend this discount throughout the country,” says Mike Noon, General Manager of AA Motoring Affairs.

The discounting appeared to be led by Gull, and only happened in those locations with Gull service stations. There are no Gull stations in Wellington or the South Island.

“AA Members throughout the rest of the country were frustrated they couldn’t benefit from this competition. We believe the oil companies had the opportunity to pass on lower petrol costs to all motorists nationwide during March, however this opportunity has now been lost due to rising international crude and refined product prices,” he said.

Mr Noon says the oil company margins were above average from mid-March thanks to New Zealand’s strengthening dollar, which is now worth over 0.71c against the US dollar, offsetting the rising international prices. However, since then excise tax on petrol has also risen 0.69c per litre (incl. GST), under the annual inflationary adjustment on 1 April.

By comparison, diesel prices have been “surprisingly resilient –diesel consumers are getting a good deal at the moment,” Mr Noon believes.

Compared to this time last year, petrol prices were $1.57 per litre (91 octane), and diesel $1.17 per litre, according to AA PetrolWatch. International refined petrol prices were lower 12 months ago, but so was the exchange rate; by comparison. Today’s refined diesel prices are similar to a year ago – the lower retail price largely attributable to the currently high dollar.

The AA reminds motorists that the best fuel savings come from driving more economically. For helpful tips on how you can reduce your fuel costs click here to visit AA Online or go to www.fuelsaver.govt.nz

ENDS

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