Media Release: 4 August 2010

PetrolWatch – July 2010

ETS has little impact on fuel prices

Retail fuel prices remained virtually unchanged during July, despite the introduction of the Emissions Trading Scheme. Petrol and diesel prices dutifully rose three cents per litre on 1 July, before dropping three and two cents per litre respectively a few days later on the back of falling commodity prices.

Petrol prices ended the month on $1.76 per litre for 91 octane in the main centres, unchanged since 22 June, with diesel prices finishing on $1.19 per litre.

“It’s been a stable month for fuel prices in spite of the ETS, and although international oil and refined fuel prices have increased slightly during July, these have been offset by a gain in the kiwi dollar,” says AA PetrolWatch spokesperson Mark Stockdale.

“As a result, the importer margin, which is the difference between retail prices and costs, has been at the high end of the usual range all month, and above average for diesel and premium petrol.” 

Underinflated tyres wasting fuel

Motorists are reminded of the results of a recent AA survey which found that nearly 50 per cent of cars could have underinflated tyres, meaning nearly half of motorists could be wasting fuel and compromising safety.

The survey involved a random sample of 150 vehicles undergoing a warrant of fitness check. Forty-eight per cent of the vehicles had underinflated tyres and the average variation was about 4 psi underinflated, which translates to about a 4 per cent increase in fuel consumption.

“At current petrol prices this equates to about 7 cents more per litre and over a year would add about $100 to the annual fuel bill for the average motorist in a medium-sized petrol car.”

“Underinflated tyres use more fuel and wear out faster, so they unnecessarily cost you money on both fronts, and they’re less safe because they compromise cornering, braking and water dispersion,” says Mr Stockdale.

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

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