Currency slump raises fuel prices

Petrol prices are up again, rising 3c a litre to $2.08, while diesel is up 2c a litre.

BP confirmed the latest move, blaming a recent big drop in the New Zealand dollar to a five-year low against the US currency. There had also been some impact from higher world product prices, BP said.

BP prices are 207.9c for octane and 132.9c for diesel.

Prices rose as high as $2.10 a litre last month, before dropping back to about $2.05 before the latest move on Wednesday.

Z Energy said its prices had gone up 3c a litre too, because of the weaker New Zealand dollar and higher product prices. Caltex was also advertising a price of $2.07.9 a litre in Wellington yesterday.

But Gull has kept prices at all its stations under $2 a litre.

‘‘Given we saw crude fall last evening we have no immediate

91 plans to change that,’’ Gull general manager Dave Bodger said.

Gull’s cheapest price remains just under $1.90 a litre at some stations.

The latest move up by the big players comes as the New Zealand dollar continues to drop from more than US75c at the start of May, to just under US71c at the end of the month.

However, on Wednesday in international markets the price of crude oil fell about 2 per cent, with West Texas Intermediate down to US$60 (NZ$84) a barrel. In London, Brent crude for July lost $US1.69 to $US63.80 a barrel.

Signs that global output is not falling much despite the crude glut pressured both markets.

The Saudi-led Organisation of Petroleum Exporting Countries (Opec), set to meet in Vienna on Friday, has indicated it does not plan to reduce production.

The latest increase in pump prices in New Zealand added to the 2c a litre overall rise seen in May. Prices initially shot up to $2.10 last month but then ended the month at $2.05 a litre.

However, with the sudden end of the discount price war in wide areas around the North Island, prices jumped far more for some drivers during the month, some up 20c to 30c a litre.

In parts of Auckland, Whangarei, Waikato, Bay of Plenty, Hastings, Manawatu, Wanganui, Levin and Masterton – where there had previously been heavy price discounting – prices at many service stations suddenly rose from below $1.90 a litre to more than $2 per litre.

‘‘Many lucky motorists had not seen petrol prices over $2 a litre for over a year thanks to intense local price competition which was sometimes more than 30 cents below the price being charged in much of the South Island and lower North Island,’’ AA analyst Mark Stockdale said.

The former price war came to an abrupt end after Gull put up prices during May, Stockdale said.