Accessible News

Top storiesNew ZealandPoliticsBusinessEntertainmentSportsWorld

Petrol prices on 'endless creep upwards' as fuel companies add pain to the pump

Thursday, 6 September 2018

The BP and Caltex stations in Wanaka in Central Otago are charging more than $2.50 a litre for petrol.
The BP and Caltex stations in Wanaka in Central Otago are charging more than $2.50 a litre for petrol.

Petrol prices are hitting new record highs in many parts of New Zealand, with stations in some locations charging more than $2.50 a litre.

Another 3c a litre increase this week 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.

**READ MORE:

* Burglars smash their way into Dinsdale Caltex in early morning break-in

* Petrol prices hit new record as another tax increase approaches

* Fuel prices creep up towards record high, again

* How far would you drive for cheap fuel?**

Just over a year ago, motorists in many parts of the country were paying less than $2 a litre.
Just over a year ago, motorists in many parts of the country were paying less than $2 a litre.

In some more remote locations, prices are considerably higher. In Wanaka in Central Otago, both BP and Caltex are charging $2.509.

Larry Green, 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' a litre.

!function(e,t,n,s){var i='InfogramEmbeds',o=e.getElementsByTagName(t)[0],d=/^http:/.test(e.location)?'http:':'https:';if(/^\/{2}/.test(s)&&(s=d+s),window[i]&&window[i].initialized)window[i].process&&window[i].process();else if(!e.getElementById(n)){var a=e.createElement(t);a.async=1,a.id=n,a.src=s,o.parentNode.insertBefore(a,o)}}(document,'script','infogram-async','https://e.infogram.com/js/dist/embed-loader-min.js');

Figures provided by Gaspy, based on average prices in Auckland, Wellington and Christchurch show that while 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, which also supplies the Caltex stations, blamed high 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 dollar]), and local competition,' a 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, with a nationwide increase in the excise tax on petrol due to be imposed from September 30, which will add another 3.5c to the price of a litre of petrol, or around 4c a litre including GST.

* Comments on this article have closed.