PetrolWatch – October 2011

2 November 2011

PetrolWatch – October 2011

No price change for 7 weeks
Petrol and diesel prices remained unchanged throughout October, at $2.10 a litre for 91 octane petrol in the main centres, and $1.47 a litre for diesel at most outlets.

“Retail fuel prices have been steady for over seven weeks, the longest period without a price change since April 2009,” says AA PetrolWatch spokesperson Mark Stockdale.

“But this doesn’t mean commodity prices have been stable, with oil prices rising US$10 a barrel during the month, and refined petrol prices up about 4 US cents per litre by month end. Fortunately the rising Kiwi dollar protected motorists from a price increase,” said Mr Stockdale.

AA PetrolWatch says it is typical at this time of year for oil and refined fuel prices to rise as countries stockpile fuels in preparation for the northern hemisphere winter.

“So far this year, fuel prices have risen 10 cents per litre since January. The same was true this time last year. But in the period from October to December 2010, prices rose nearly 20 cents per litre in response to sharply rising commodity prices, and we anticipate a similar trend in the remaining months of 2011. The only thing that might soften the blow is the unusually high exchange rate, but motorists should not expect this to keep offsetting rising commodity prices,” said Mr Stockdale.

“Commodity prices for oil and refined fuels are not only increasing due to rising demand for transport, particularly in countries like India and China, but because many countries also use oil and diesel for heating and electricity generation.

“So as the world population reaches a new milestone of 7 billion, and global demand for transport and energy increases, we can expect fuel prices to continue to rise in future,” says Mr Stockdale.

“The best thing motorists can do to manage higher fuel prices is to reduce their fuel consumption by adopting the AA’s fuel saving tips, combining trips, car-pooling, using public transport or walking and cycling, and when they replace their car to choose a more fuel-efficient model,” says Mr Stockdale.

• For more fuel saving tips, go to: www.aa.conz/aapetrolwatch
• Vehicle fuel economy ratings: www.fuelsaver.govt.nz

ENDS

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