March petrol prices rise 16c to match all-time high

The price of petrol rose a total of 16 cents per litre during March to $2.19 a litre for 91 octane, the highest price since July 2008 when prices peaked at $2.19 a litre. The retail price of diesel at most stations rose a massive 27 cents per litre last month to $1.70 a litre, but still short of the $1.92/litre record of July 2008.

"The higher fuel prices reflect the 14 percent increase in oil prices in late February which climbed US$14 to US$117 a barrel. In New Zealand dollars this equated to a 16 cent per litre rise in the imported cost of petrol, or an 8 percent increase in the retail price," says AA PetrolWatch spokesperson Mark Stockdale.

"While oil prices settled during the month, a drop in the value of the New Zealand dollar saw another retail price increase in late March, although the bigger rise in diesel pump prices is difficult to justify.

"The AA calculates that the imported cost of diesel has risen about 20 cents per litre since late February. With the exchange rate recovering there is now room to drop diesel prices further than the 3 cent per litre reduction on 1 April," said Mr Stockdale.

AA vehicle running costs show fuel is not the biggest item

The AA has released its 2011 vehicle running cost comparisons. The running costs compare the annual ownership costs of a new car according to category (small, compact, medium and large) and fuel type. The running costs include fixed costs like capital and depreciation and variable costs like fuel and diesel Road User Charges.

"At a time of rising fuel prices, people's thoughts naturally turn to managing their fuel costs, which for some may include buying a newer, more fuel efficient car. But for anyone considering replacing their vehicle it's important to keep fuel costs in perspective and take all annual ownership costs into account.

"While there are some models with impressive fuel economy, they aren't necessarily the cheapest in their category to own, and the AA's analysis shows it may end up costing owners several thousand dollars in order to save a few hundred dollars in fuel. Even with higher prices, fuel only represents about 25% of the overall annual cost of running a new petrol car, and less for diesels. Anyone thinking of buying a new or late model car should use the AA's cost comparisons as a guide to determine how much it will really cost," says AA PetrolWatch spokesperson Mark Stockdale.

"Similarly, buyers should also check the safety ratings of prospective cars because it would be a false economy to compromise personal safety by choosing a less safe vehicle for the small saving it might offer in fuel costs. The most cost-effective and safest option may not be the most fuel-efficient model, but instead motorists can reduce their fuel costs by adopting some of the AA's ten fuel saving tips."

* AA Members can obtain a free copy of the annual running costs from www.aa.co.nz/myaa or by phoning 0800-500-333. Non-members can purchase a copy by phoning 0900-58324 (a flat charge of $7 applies)

* 10 fuel saving tips: www.aa.co.nz/motoring/tips/practical-motoring-tips/Pages/Fuel-economy-tips.aspx

* For vehicle safety and fuel economy ratings, see: www.rightcar.govt.nz

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