PetrolWatch – October 2007

2 November 2007

PetrolWatch – October 2007

Unrelenting rise in fuel prices Petrol and diesel rose 13 and 9 cents respectively during October, although the cumulative effect was less thanks to an 8 cents reduction earlier in the month. Petrol prices started the month by dropping to $1.60 per litre, rising to $1.69 by month end. Diesel ultimately rose from $1.15 per litre to $1.20 in the main centres.

AA Motoring Policy Analyst Mark Stockdale says “the recent price increases come on the back of an unrelenting rise in crude and international refined fuel prices. Crude barrel prices broke through the US$80 a barrel barrier at the start of October, but have subsequently risen another US$10 during the month.”

“The rising international prices are due to several factors, such as political pressure between Turkey and Iraq, and concerns about adequate stockpiles in the USA. However, all of these result in higher pump prices for motorists on account of speculation on the international market which sets the prices we pay. If these issues are resolved, we expect the oil companies to promptly pass on any price reductions to motorists.”

According to AA PetrolWatch, a year ago motorists were paying $1.44 per litre for 91 octane petrol, and $1.04 per litre for diesel, yet the New Zealand dollar was only worth US67 cents compared to nearly US77 cents now. However, twelve months ago the crude barrel price was US$59.

“Crude prices have risen 53 per cent in the last year, and 11 per cent in October alone. Refined petrol prices have similarly increased 51 per cent in the last 12 months, and 14 per cent during the last month. However pump prices only went up 5.6 per cent in October, and 17 per cent for the year,” said Mr Stockdale.

The AA encourages motorists to save on fuel costs by employing fuel efficient driving techniques, and taking advantage of the various supermarket fuel vouchers on offer.

“Adopting a smoother driving style can reduce fuel consumption by as much as 25 per cent,” says Mr Stockdale.

-Visit www.aa.co.nz or www.fuelsaver.govt.nz for tips on how to save fuel.

ENDS

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