Drivers told to expect more pain at the pump as petrol prices rise

Wednesday, 24 April 2019

Petrol prices are on the rise as the seasons change and geopolitical tensions put pressure on oil prices, motorists are being warned.

Over the past month petrol prices have jumped 10 cents a litre for 91 octane, about 15c higher than this time last year, according to the AA Petrolwatch.

The national fuel price in April was $2.30 a litre for 91 octane, $2.39 for 95 octane and $1.73 for diesel.

AA petrol pricing spokesman Mark Stockdale said there had been a steady increase in fuel prices since the start of the year, which was normal following a slump in prices over summer.

The national fuel price in April was $2.30 for 91 octane, $2.39 for 95 octane and $1.73 for diesel.

United States President Donald Trump has tightened sanctions on Iran, which has led to a rise in the price of oil.

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'The rise in fuel prices is just reflecting increases in global commodity price and international factors all of which are out of the control of New Zealand, fuel companies and the Government,' Stockdale said.

AA spokesman Mark Stockdale says motoring becomes more expensive in winter when demand for fuel rises as drivers in the Norther Hemisphere go on summer holidays.

'US president Donald Trump's latest sanctions on Iran, and Libya, a major oil producer being at the brink of war as well as some major refineries around the world that shutdown temporarily for maintenance, have contributed to the rise in prices.

'The issue is short term demand and supply fluctuations will cause changes in prices.'

Stockdale said the changing seasons also contributed to rising fuel prices.

'We see this trend year after year – New Zealand prices do tend to be lower leading up to our summer and the reverse is true for winter.

As the northern hemisphere moved in to summer, demand there increased, along with the price, Stockdale said.

The AA calculates its 'national price' based on Wellington and South Island prices, which tend to be higher than the upper North Island.

According to price-tracking app Gaspy, the cheapest 91 octane petrol in central Auckland is $2.19 a litre, despite the 10c a litre regional fuel tax.

In Christchurch, the cheapest 91 octane is $2.13 and Wellington $2.29.