PetrolWatch – June 2010

PetrolWatch – June 2010

Steady prices for June before planned increases

Retail fuel prices remained unchanged for nearly a month before rising a few cents in late June. Petrol prices increased 3 cents to $1.76 per litre for 91 octane in the main centres, and diesel rose 2 cents at most outlets to end the month on $1.18 per litre.

“Pump prices have been relatively stable in June in spite of international commodity prices which have begun rising after falling sharply in May. Fortunately, Kiwi motorists have the stronger New Zealand dollar to thank for offsetting much of those cost increases,” says AA PetrolWatch spokesperson Mark Stockdale.

According to AA PetrolWatch, petrol and diesel commodity prices have recovered over half the losses experienced in May, rising more than 10 percent during June, while the exchange rate gained about 4 cents against the US dollar.

ETS price rise doesn’t send a signal to motorists

Petrol and diesel prices increased a further 3 cents per litre at most fuel outlets except Gull on 1 July due to the implementation of the Emissions Trading Scheme. 91 octane petrol now retails for $1.79 per litre, and diesel $1.21 per litre.

“Under the Government’s capped greenhouse gas price of $25 per tonne and 2-for-1 deal, AA PetrolWatch calculated that the ETS would impose a 3 cent per litre cost on petrol, and up to 4 cents per litre on diesel, so the oil companies have passed on that amount and no more,” says AA PetrolWatch spokesperson Mark Stockdale.

AA PetrolWatch estimates the additional charge will add about $40 to the annual fuel costs of the average motorist driving 14,000km a year.

“The AA is concerned that the current ETS will not send a signal to motorists that is useful. Fuel prices fluctuate all the time and motorists are used to this and won’t necessarily reduce their fuel consumption or adjust driving practices on the basis of a moderate price change which can be offset by supermarket vouchers. The total price of petrol, including 76 cents per litre in taxes which will be rising later this year, does influence drivers but its difficult to see how an additional 3 cent charge for the ETS will make any difference,” says Mr Stockdale.

AA PetrolWatch notes that taxes on both petrol and diesel will be increasing in October. GST is rising to 15%, which will add about 4 cents to the current price of petrol, and 3 cents to diesel. Another three cents per litre is also being applied to petrol excise on 1 October, with a commensurate increase in diesel Road User Charges.

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

ENDS

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