High crude oil prices put pressure on pump prices

High crude oil prices put pressure on pump prices

Retail petrol and diesel prices increased six cents per litre during April, with a litre of 91 octane rising to over $1.80 for the second time this year. Petrol ended the month at $1.82 per litre, and diesel $1.22 per litre, the highest diesel price in 17 months.

“At US$85 a barrel, crude oil has now reached an 18-month high and this has led to an increase in the cost of imported fuels. Fortunately, some of this increase has been offset by a slight improvement in the value of the New Zealand dollar during the month,” says AA PetrolWatch spokesperson Mark Stockdale.

“The rising crude oil and refined prices are partly due to normal seasonal fluctuations and slowly improving global demand, especially from Asia. However, international market analysts expect the increased competition in the refinery sector could put downward pressure on imported petrol and diesel prices in the coming months.”

AA PetrolWatch warns that taxes on both petrol and diesel will be increasing this year. The Emissions Trading Scheme will add about three cents per litre to the cost of both fuels from 1 July, with another three cents per litre being applied to petrol excise in October.

“Coupled with an expected increase in GST to 15%, petrol could end up costing another 10 cents per litre by the end of the year, with diesel rising about six cents per litre,” says Mr Stockdale.

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

ENDS

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