PetrolWatch: Oil prices at highest level since July 2008

3 April 2012

PetrolWatch – March 2012: Oil prices at highest level since July 2008

Petrol prices rose 3 cents per litre in March, with diesel up 2 cents a litre, following a rise in commodity prices and a drop in the NZ exchange rate since the last retail price increase in late February.

Since then, the imported cost of petrol and diesel had risen 5 cents per litre while retail prices were up by about half that amount.

“At $220 a litre for 91 octane, petrol prices are perilously close to the record high of $2.22 a litre in May 2011, although diesel prices at $1.57 a litre are still some way off the record $1.92 a litre in July 2008,” says AA PetrolWatch spokesperson Mark Stockdale.

According to AA PetrolWatch, oil prices peaked at US$128 a barrel during March for Brent blend, which is the relevant source for refining into engine fuels in Australasia – not the lower price West Texas Intermediate crude which is more commonly reported in the media but is not exported.

“This is the highest oil price since July 2008 and higher than May 2011 when retail prices peaked at $2.22 a litre. Only the fact that the Kiwi dollar is worth more today has stopped petrol prices from hitting a new record high.

“While commodity prices are lower than they were in mid-2008, today’s retail prices are similar because we are paying 12 cents a litre more in petrol tax than in 2008,” said Mr Stockdale.

AA PetrolWatch on YouTube
The AA has produced an informative short video explaining how fuel prices are set in NZ The video discusses the factors that make up the price of fuel, including taxes, exchange rates, and the difference between oil and refined petrol and diesel commodity prices.

To view the video, go to: www.aa.co.nz/aapetrolwatch

ENDS

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