Stronger Kiwi dollar holds pump prices

Media Release: 7 April 2009

PetrolWatch – March 2009

Global prices on the up, but stronger Kiwi dollar holds pump prices

Fuel prices were stable during March, moving just once during the month. According to AA PetrolWatch, 91 octane petrol began the month on $1.64 per litre in the main centres, and fell five cents in mid-March to $1.59, while diesel dropped from $1.01 per litre to 99 cents.

AA Senior Policy Analyst Mark Stockdale says “this is the first time in two years that diesel prices have fallen under one dollar a litre, while petrol prices are 19 cents a litre lower than the same time last year.”

While pump prices fell slightly during the month, global crude oil and refined fuel prices rose, with the cost of imported petrol increasing by as much as 11% towards the end of March, and imported diesel by up to 17% before falling back. The market price of crude oil rose by 17% in the month.

“The good news was the value of the Kiwi dollar also climbed during the month, up by eight cents. The bad news was that this only offset the global increase in the cost of refined petrol and diesel, and did not lower pump prices further,” says Mr Stockdale.

Mobil launches biodiesel

Mobil Oil NZ has become the first oil company in New Zealand to retail a biofuel-blended diesel. The company is trialling a B5 diesel blend, containing 5% biodiesel derived from tallow, at two service stations in the Bay of Plenty. They are at the corner of Fenton and Te Ngae Roads in Rotorua, and at the corner 10th Avenue and Cameron Road in Tauranga. The biodiesel blend sells for the same price as ordinary diesel.     

Mobil B5 Diesel meets the New Zealand specifications for conventional diesel. As such, Mobil says it is suitable for use in most diesel vehicles. However, some vehicle manufacturers may not endorse the use of tallow-based biodiesel due to concerns about its performance in cold temperatures, which could lead to fuel system blockages. The AA recommends that owners check with the vehicle manufacturer to verify their car’s suitability to run on Mobil B5 Diesel. The AA also advises motorists not to use biodiesel in recreational boats.

More information on biodiesel is available on the AA website www.aa.co.nz or at the Mobil service stations.

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