PetrolWatch: Petrol prices reach record highs before falling

PetrolWatch – July 2013
Petrol prices reach record highs before falling

The price of a litre of petrol reached an all-time high in July, with 91 octane rising to $2.27 per litre in the main centres, and $2.35 for 95 octane. After two weeks, prices fell 6 cents to end the month on $2.21 per litre. The price of diesel at most service stations ended the month on $1.53 per litre, after reaching $1.57 per litre earlier in the month.

“It’s a record no one wants to achieve, after commodity prices reached four-month highs at the same time our exchange rate fell to its lowest level in twelve months,” says AA PetrolWatch spokesperson Mark Stockdale.

“Although petrol prices are at record highs, the price of diesel is still well below the July 2008 high of $1.92 per litre, because commodity prices are lower today. But petrol costs more today than that 2008 spike because taxes have risen 17 cents per litre since then,” Mr Stockdale said.

“While the price of petrol has never been this high before in nominal terms, in real terms, motorists have paid more for fuel. Back in December 1984 the price of petrol reached 84 cents per litre, which converted to 2012 prices equates to $2.42 per litre. In terms of affordability, fuel cost a lot more during 1984-85 than it does today, and throughout much of the early 1980’s it was over $2 a litre in real terms,” Mr Stockdale added.

To help motorists cope with higher prices, the AA has produced a short YouTube video showing simple ways they can cut their fuel costs: http://youtu.be/IWkVHhKtieM

For more information on fuel prices, go to: www.aa.co.nz/petrolwatch

ENDS

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