Steady fuel prices give motorists holiday reprieve

Media Release: 12 January 2010
PetrolWatch – December 2009

Steady fuel prices give motorists a holiday reprieve

Petrol prices remained stable in the lead up to the busy Christmas and New Year travel period, after initially rising three cents per litre in early December before reversing a week later. The price of a litre of 91 octane petrol in the main centres concluded the month where it began, on $1.66. Diesel remained at $1.08 per litre, unchanged since late October 2009.

AA PetrolWatch spokesperson Mark Stockdale says “the steady prices were a welcome reprieve for Kiwi motorists as they headed out on their summer travels, and reflected relatively flat global fuel costs. That said, international prices have already started rising in the new year.”

According to AA PetrolWatch, the ten week run of unchanged retail diesel prices is the longest since April 2009.

Retailers can now pass on credit card fees

The AA is advising motorists to check when they pay for fuel whether the service station is charging credit card fees. The move follows a Commerce Commission agreement late last year that permits retailers to pass on bank fees incurred for processing credit card transactions.

“Previously, retailers could not pass on the credit card fees and instead absorbed the cost as part of their operating profit, This meant the fees were covered in the retail price, including those who paid cash,” Mr Stockdale says.

“The inability for retailers to pass on bank fees was partly responsible for the closure of some independent service stations which faced bank fees that rose with the fuel price while margins remained fixed.”

“The AA understands some independently-owned BP stations in Auckland and Wellington are charging fees to customers who pay by credit card. This ranges from 60c for transactions under $30, to 90c for transactions over $30. That equates to about 3.5 cents per litre for a $30 fill at current prices.”

“The AA advises motorists to check whether credit card fees apply, and if so consider paying by cash or eftpos, or shopping elsewhere,” says Mr Stockdale.

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

ENDS

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