Kiwi dollar protects against rising fuel prices

Media Release: 1 May 2007

AA PetrolWatch – April 2007

Kiwi dollar protects against rising fuel prices

Petrol prices ended the month at the same price they started at, $1.56 per litre for 91 octane, with diesel just two cents more than at the beginning of April, on $1.02 per litre.

This was despite international petrol prices rising around 6 per cent during the month.

“Motorists were fortunate the rising New Zealanddollar helped offset the increase in international fuel prices during the month of April,” says AA General Manager of Motoring Affairs, Mike Noon.

The New Zealanddollar rose from 71.48 United Statescents at the beginning of April, to nearly 75 United Statescents towards the end of the month.

Fuel prices rose two to threecents per litre briefly in early April, but promptly dropped back six cents (five cents for diesel) prior to Easter, where they remained before rising four cents on 26 April.

“Not only were motorists protected from price rises by the exchange rate, but they also benefited from competition between oil companies which kept prices down. It’s very encouraging to see some strong competition between the oil companies which isn’t due to falling costs. We advise motorists to keep an eye on price boards as they may vary.”

“No one likes it when fuel prices go up, but for once oil companies were slow to pass on the increased costs. Although prices are still high we can’t really complain as it’s been a good month,” says Mr Noon.

Compared to this time last year, petrol prices were $1.71 per litre for 91 octane, and $1.28 per litre for diesel, according to AA PetrolWatch.

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 visit www.aa.co.nz (or click here to access) or go to www.fuelsaver.govt.nz.

ends

© Scoop Media