Fuel prices ebb and flow

Media Release: 3 March 2009
PetrolWatch – February 2009

Fuel prices ebb and flow

Fuel prices were steadier for the month of February compared to January, with a litre of petrol ultimately ending the month just one cent higher than at the start. According to AA PetrolWatch, 91 octane petrol began the month on $1.63 per litre in the main centres, rising to $1.72, before falling to $1.64. By comparison, diesel prices fell from $1.04 per litre to $1.01, after briefly rising to $1.07 earlier in the month.

AA Senior Policy Analyst Mark Stockdale says “international refined petrol prices stabilised during the month after increasing all through January. Refined prices then began to fall in late February and pump prices followed. However, the size of the pump price drop was diminished by a fall in the New Zealand exchange rate, which then put the brakes on another price reduction.”

“While international refined diesel prices, like crude oil, have remained fairly stable since the start of the year, they also began to fall in late February, which led to the lowest diesel pump price since April 2007.”

The lower diesel prices have seen the gap between diesel and petrol increase to 63 cents, from as little as 27 cents during the peak fuel prices in July 2008.

“Diesel users are currently having a good run from the lower prices, after being badly hit in the pocket last year. Currently, a two-litre diesel car will be saving about $1000 in fuel costs over 14,000 kilometres compared to an equivalent petrol-engined car, or $484 when including the cost of purchasing Road User Charges,”says Mr Stockdale.

According to AA PetrolWatch, this time last year petrol was retailing for $1.75 per litre and diesel $1.29 per litre.

ENDS

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