Cost of petrol on ‘endless creep upwards’
Petrol prices are hitting new record highs in many parts of New Zealand, with some stations charging more than $2.50 a litre.
Another increase this week, of 3 cents a litre, put the price of regular petrol at stations using the so-called ‘‘national price’’ up to $2.359, less than a fortnight after the price crossed $2.30 for the first time.
The national price is used in main centres where there is no regional discounting; however, motorists in the upper North Island tend to pay less, because of discounting.
Although Auckland motorists are supposed to be paying an extra 11.5c a litre through a regional fuel tax imposed at the start of July, the gap between Auckland on the one hand and Wellington and Christchurch appears to be narrowing.
In some more remote locations, prices are much higher. In Wanaka, Central Otago, BP and Caltex are charging $2.509.
Larry Green, the co-founder of Gaspy, which collects prices at petrol stations across New Zealand, said the cost of petrol was on an ‘‘endless creep upwards towards $2.50’’ per litre.
Figures provided by Gaspy, based on average prices in Auckland, Wellington and Christchurch, show that although prices rose in Auckland when the regional fuel tax was introduced, prices in the capital and Christchurch are once again higher.
In a statement, Z Energy blamed global oil prices and a weaker New Zealand dollar.
‘‘Prices are set based on international oil prices, the strength of the [New Zealand dollar] against the [US dollar] (because we buy oil in [US dollars]), and local competition,’’ a Z spokeswoman said.
‘‘Crude oil and refined products like petrol and diesel are all internationally traded commodities. Barrel prices are really high at the moment and increased at the start of this week – this, along with a low kiwi dollar, is why the price at the pump has gone up.’’
Prices are likely to rise further in the short term. A nationwide increase in the excise tax on petrol is due to be imposed from September 30, adding another 3.5c to the price of a litre of petrol, or about 4c a litre including GST.