Pain at the pump as Christchurch petrol prices hit record high

Friday, 18 May 2018

91 octane petrol prices have reached a record high of $2.299. The Challenge petrol station at Tuam St, Christchurch.

Christchurch petrol costs have hit $2.30 a litre at the pump, a record high for the city – and there are likely more price rises ahead, an economist says.

After a week of rising prices, 91 octane petrol hit $2.299 a litre at least 30 service stations in the greater Christchurch area on Friday, while many were charging $2.259.

Prices are higher in the South Island and lowest in Auckland.

Higher octane petrol is up to $2.39, and diesel up to $1.70, PriceWatch website shows.

Unleaded petrol pump prices in the city have now risen 7 cents a litre in as many days, topping a previous high of $2.26 from July 2013. The lowest price in the past year was about $1.86 in July.

Petrol prices have risen 7 cents a litre in seven days in Christchurch. The Z station at Papanui Rd at Carlton Corner.

The NPD petrol station at Moorhouse Ave, Christchurch.

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The BP petrol station at Fendalton Rd, Christchurch.

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ANZ economist Miles Workman said he expected more price rises ahead, but did not want to forecast how high they would go.

Prices a week ago at BP petrol station at Halswell Rd, Halswell.

The previous high was $2.26 a litre in July 2013.

According to petrol price app Gaspy prices have been rising twice as fast in the South Island than the North Island, where there is more competition from lower-priced Gull gas stations.

On Friday Aucklanders could get 91 for $2.06, but are most were paying to $2.07 to $2.23.

Christchurch city councillor Deon Swiggs called for Government action in a post on Facebook on Friday when prices reached $2.30.

'How is this fair! We are been taken for a ride in this disgraceful 'free' fuel market. The Government needs to address it,' Swiggs said

Workman said the falling Kiwi dollar against the United States dollar and rising international crude oil prices were the major reasons for the price hikes. Globally, higher demand for fuel, lower levels of production and the US pulling out of the Iran accord were helping fuel oil inflation.

Workman said the price rises in New Zealand in the past few weeks had been persistent, but without volatile spikes.

'Here, the companies see the higher oil prices and a low dollar and their bottom line is, they pass it through to the consumer,' he said.

Workman said the higher petrol prices would have a flow-on effect on inflation. Directly they would affect low-income families the most and indirectly through transport costs they would push up consumer prices.

Petrol prices have been in the spotlight in the past few weeks after an internal BP email revealed tactics to push up prices. The company was summoned to a meeting with Energy Minister Megan Woods, who said the email was a sign the industry could be 'broken'.

The latest Christchurch prices were not the highest Kiwis had paid, in adjusted terms. In mid-1985 it was the equivalent of $2.60 a litre, according to Ministry of Business, Innovation and Employment data, which goes back only to 1983.