AA PETROL WATCH – July 2005

AA Petrolwatch for July shows a record level for petrol at main centres of 137.9 cents per litre (91 octane) at the end of the month. There was little doubt during the month that an all time high would be reached, as the world oil price continued to hover above $US60 barrel, and the NZ exchange rate was more volatile than in earlier months, when it had remained above 70c to the US dollar.

Average pump prices across the country have continued to remain constant in line with the upward price movement of 6cents per litre during July, to reach the present average across the country of 138.7 cents at month end. At the same time the margins have remained constant, reflecting the extent of competition that prevails within the oil industry.

With the pump price at a record high, the impact on a motorists’ budget is now very relevant, particularly when the amount of GST (15.4 cents) on every litre is taken into account. While other taxes and levies on fuel remain constant as the pump price rises, the GST factor continues to climb regardless. On every litre of petrol there are taxes and levies including GST of 63 cents, of which only 22.49c goes to the National Land Transport Fund.

A similar message to that given in previous months still applies – there is no certainty that pump prices will decline in the short term, and motorists should therefore keep their tanks full to avoid being caught with an empty tank should a further increase occur.

A reminder also to motorists to check on the pump price when filling up, as at some locations not all prices will be displayed on the advertising boards outside the site.

Motorists can also achieve more economical motoring by following some straight-forward measures – servicing the car regularly will achieve engine efficiency and reduce fuel consumption; ensure tyres are at the recommended pressure; drive according to the road conditions and the speed limit; avoid unnecessary hard acceleration; where practical combine errands into one journey instead of several on the same day.

ENDS

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