Prices steady for February

PetrolWatch – February 2010

Prices steady for February

Fuel prices remained unchanged during February, with petrol stable on $1.73 per litre and diesel on $1.11 per litre in the main centres.

“It’s only the second time since October 2006 that fuel prices haven’t moved in a calendar month – the last time was November 2009,” says AA PetrolWatch spokesperson Mark Stockdale.

“The steady prices are welcomed by motorists, and reflect relatively stable global commodity prices, with what fluctuations there have been offset by our changing exchange rate.”

According to AA PetrolWatch, crude oil and refined petrol prices rose between 4% and 6% during February, with refined diesel up 10%, but these were partly offset by a gain in the kiwi dollar which recovered two cents after falling earlier in the month.

“The oil company importer margin – retail price less costs – for petrol began the month at the high end of the range, but with the moderate increase in commodity prices has fallen to the low end of the range.”

“So we have been relatively lucky not to see a retail price increase thus far, although some oil companies did attempt to raise prices in late February.”

“The importer margin for diesel has, however, been above average since mid-January, and has only just come back into line. We think the opportunity for a decent reduction in the diesel pump price during February has been lost and the AA would be disappointed if diesel prices now rose on the back of international increases, as the oil companies can well afford to absorb those cost increases for a while yet,” says Mr Stockdale.

For more information, go to: www.aa.co.nz/aapetrolwatch

ENDS

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