Petrol prices: 'Fuel has never been so expensive' and prices could rise higher

Wednesday, 13 October 2021

Petrol prices have topped those in 2018, data from Gaspy shows.

The price of petrol has reached an all-time high, data from price tracking app Gaspy shows.

Gaspy owner Larry Green said 91 octane petrol had cracked $2.50 a litre in some areas, and the 91 national average was $2.39 a litre,”

“Fuel has never been so expensive in New Zealand,” Green said.

David Bodger, general manager at Gull, warned motorists that the petrol price was likely to rise higher still.

* Pain at the pump as petrol prices hit 18-month high

A constant queue of drivers made the most of Gull Millwater's cheap petrol price in 2018.

* Coronavirus: Falling oil prices could be a tonic for motorists and industry alike

Bodger said the price per barrel of petrol shipped from Singapore had risen $17 since the start of September as demand for fuel around the world increased as countries moved out of their Covid-19 restrictions.

“It's all about the recovery, and people speculating on the recovery of the world economy,” Bodger said.

Added to that was an increase in the price of carbon credits on the New Zealand emission trading scheme, he said.

“Carbon doubled in price between May and September,” Bodger said.

That had added about 6 or 7 cents onto the price of a litre of petrol at the pump.

But with pressure on global prices likely to increase, “I don’t think it’s going to get any better”, Bodger said.

Petrol prices have reached record levels.

“There’s probably further to go,” he said.

Mike Noon, motoring affairs general manager at AA, said prices were being driven by pressures from outside of the country.

Demand for fuel around the world was surging as countries attempted to return to normal post-Covid restrictions, he said.

But there was also a supply issue, Noon said.

“Opec supply really hasn’t come on as much as we thought it would,” he said.

Opec is the Organisation of the Petroleum Exporting Countries cartel.

“There’s big demand for energy. Countries are coming out of Covid quite rapidly.”

China had started importing coal from Australia again, despite the two countries’ ongoing diplomatic squabbles, Noon said.

He did not believe the price rises at the pump were the result of petrol retailers pushing up their margins.

Bodger said Gull did not increase prices during the level 4 lockdown, but had lifted prices on Monday last week.

Demand for fuel remained below normal as a result of the Covid restrictions in Auckland, but had rebounded in areas where Covid restrictions were lighter, he said.