Diesel up after nine weeks without change

Media Release: 5 June 2009

PetrolWatch – May 2009

Diesel up after nine weeks without change
Petrol and diesel prices both increased during May, reversing the trend of the last few months. Petrol twice rose five cents per litre, up from $1.54 per litre for 91 octane in the main centres to $1.64 per litre. Diesel rose 3 cents per litre to $1.02, the first increase in diesel prices in more than nine weeks.

AA senior policy analyst Mark Stockdale says the rise in pump prices reflects increased costs on the international market, partly due to seasonal demand but also the declining value of the United States dollar.

“As oil, petrol and diesel are all traded in US dollars, a fall in the US currency means the products cost more in order to retain their value. However, the correspondingly strong New Zealand dollar is largely preventing the international price increases from being passed on at the pump.”

According to AA PetrolWatch, the price of a barrel of crude oil rose 29 per cent during May, with refined petrol up 31 per cent and diesel up 19 per cent. By comparison, pump prices increased only 6.5 per cent for petrol and 3 per cent for diesel during the same period, due to a 10 per cent rise in the value of the New Zealand dollar during May.

The price of a barrel of oil is now double what it was in late December 2008.

“Global analysts don’t believe oil and fuel prices will remain high because there is ample stock to cater for current worldwide demand. The recent price increases are likely to reflect the impact of OPEC production cuts and refinery shut-downs,” says Mr Stockdale.

New AA PetrolWatch available online
The AA has enhanced the fuel price monitoring data it provides online. The AA PetrolWatch information is now being updated weekly and contains a summary of petrol and diesel price changes in the previous week. A number of graphs are now available, together with explanations of the pump price trends and comparisons with movements in international costs and exchange rates.

The new AA PetrolWatch information is located at: www.aa.co.nz/aapetrolwatch

ENDS

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