Petrol prices reach 17-month high

Petrol prices reach 17-month high

Petrol prices rose during March to over $1.80 per litre for the first time since October 2008, before dropping back to $1.76 at the start of the Easter holiday period.

The price of a litre of 91 octane petrol in March increased a total of 8 cents, the first increase in over six weeks and up from $1.73 in the main centres. Diesel rose 5 cents per litre in March to end on $1.16.

“With petrol prices hovering around $1.50 to $1.70 throughout 2009, people became use to relatively stable prices, so the recent increase to above $1.80 seems to have hit an uncomfortable point for motorists who are concerned that prices may be on the up,” says AA PetrolWatch spokesperson Mark Stockdale.

According to AA PetrolWatch, the price rise was partly in response to increasing worldwide demand relative to supply, and a declining exchange rate.

“As the global economy improves, demand for fuel is expected to slowly rise. This may put some pressure on refinery output and supplies, which were cut back after demand fell significantly following the global economic crisis in the latter half of 2008.”

“However there is ample spare refining capacity and new refineries coming on line. Supplies should therefore be able to match demand in the near future and we would not expect the rapid price rises experienced in 2008, but rather moderate variations up as well as down,” says Mr Stockdale.

AA PetrolWatch notes that on 1 April 2010, the Shell NZ service station network was sold to a joint consortium of Infratil and the NZ Superannuation Fund. The sale also includes Shell’s share of the Marsden Point refinery and Fly Buy’s loyalty scheme.

“From a motorist’s perspective it should be business as usual as the new owners have no plans to change branding or coverage in the short term, or the arrangements with Fly Buys and the Foodtown/Woolworths/Countdown supermarkets for discount fuel vouchers.”

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

ENDS

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