AA Petrol Watch 2003

AA Petrol Watch 2003

AA Petrol Watch observed that despite relative stability in world oil prices and a continuing strong New Zealand dollar fuel prices increased during the month of July, with the nation-wide weekly average price of 91 Octane rising to 106.5 cents per litre in the second half of the month, compared with last month’s average of 99.5 cents per litre.

A significant reason for the increase was the additional ACC Levy on petrol, which increased from 2.3 cents to 5.08 cents per litre on 1 July 2003. Motorists will now pay excise tax and levies on petrol totalling 41.99 cents per litre (excl. of GST).

Diesel prices also rose during the month, with the average weekly price across the country increasing to 60.5 cents per litre compared with last month’s average of 59.9 cents per litre.

The Automobile Association today reiterated its view that there appears little reason to further increase pump prices at this time. “With the international oil price remaining stable and the strong New Zealand dollar, fuel companies will lose the confidence of motorists if they continue to raise prices without good and clear justification to do so” George Fairbairn, AA Director of Public Affairs said.

The Association also noted a growing and significant regional variation in petrol prices. “There are noticeable differences in pump prices between large urban areas which indicates a level of competition applies where there is another supplier, but such competition is lacking in areas where there are less fuel companies represented” Mr Fairbairn said.

AA Petrol Watch will continue to monitor fuel prices and report on them regularly.

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