PetrolWatch: Global Increase Offset by Dollar

Media Release: 3 July 2009

PetrolWatch – June 2009

Global fuel prices increase, partly offset by rising New Zealand dollar
Petrol and diesel prices both increased slightly during June, reflecting rising costs for crude oil, and refined petrol and diesel. Petrol rose four cents per litre at the start of the month, up from $1.64 per litre for 91 octane to $1.68 per litre in the main centres. Diesel rose twice during June, up a total of nine cents from $1.02 per litre to $1.11 per litre.

AA senior policy analyst Mark Stockdale says the rise in costs was partially offset at the pump by a gain in the value of the New Zealand dollar.

“International petrol prices rose by about four cents per litre after the last price rise on 2 June, but this was not passed on at the pump because of a three cent increase in the exchange rate over the same period.”

“In the last week of June, refined petrol and diesel costs fell by about four cents per litre, and as the Kiwi dollar remained strong the AA believed this saving could have been passed onto motorists. Since then the international refined prices have risen again and so the opportunity to drop retail prices has been lost, except by Gull which was the only oil company to cut prices,” Mr Stockdale said.

According to AA PetrolWatch, refined petrol costs rose 11 per cent between the last pump price rise on 18 May and the latest increase on 2 June. Refined diesel rose 20 per cent in the same period.

ACC levies increase
From 1 July, the ACC component of petrol excise rose half a cent, from 9.34 cents per litre to 9.90 cents as a result of increasing ACC costs. The ACC component of motor vehicle registration fees has also increased by about $32.

For more information, go to: www.aa.co.nz/aapetrolwatch

ENDS

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