Gordon Copeland Press

Monday, 12th May 2008

What has happened to the price of diesel?

Independent MP Gordon Copeland, the Kiwi Party spokesperson on Commerce, today questioned why the price of diesel in New Zealand has increased twice as fast as the cost of petrol since the first quarter of 2007.

"Although the price of unleaded petrol during that period has soared 32.8% to a price of $1.889 per litre, the price of diesel has skyrocketed by a whopping 65.5% over the same period to $1.569 per litre," said Mr Copeland.

"As a result, although diesel was just two thirds the price of 91-unleaded petrol in the March 2007 quarter, it is now 83% of that price. Diesel users need an explanation and the Government may need to look again at the current level of road user charges which diesel customers pay in addition to the price at the pump."

"More importantly, all of us need to know what is happening here since diesel powers the transportation of goods on trucks and trains. The higher cost thus flows through into retail prices, drives up inflation and constrains the Reserve Bank's ability to lower interest rates."

"We need an immediate explanation from the oil companies."

Gordon Copeland last week revealed that he has asked Parliament's Commerce Committee to conduct an Inquiry into the current level of petrol and diesel prices in New Zealand and reiterated that call today.

"The current situation is completely unacceptable. We need to have a transparent, open system which explains, in layman's terms, why we are seeing such a fundamental shift in the price of diesel, relative to petrol."

Petrol and Diesel Price Comparisons Cents per litre Diesel 91 unleaded petrol Diesel as % of petrol March quarter 2007 94.8 142.3 66.6 March quarter 2008 125.5 171.6 73.1 9 May 2008 (in Wellington) 156.9 188.9 83.1

Increase between March quarter 2007 to May 2008 62.1 46.6 Percentage increase 65.5% 32.7%

ENDS

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