Subscribe to RSSPetrol Price On Way Up
The AA predicts that petrol could end up costing another 10 cents per litre by the end of the year, with diesel rising about six cents per litre.
Retail petrol and diesel prices increased six cents per litre during April, with a litre of 91 octane rising to over $1.80 for the second time this year.
Petrol ended the month at $1.82 per litre, and diesel $1.22 per litre, the highest diesel price in 17 months. “At US$85 a barrel, crude oil has now reached an 18-month high and this has led to an increase in the cost of imported fuels.
AA PetrolWatch spokesperson Mark Stockdale says that some of this increase has been offset by a slight improvement in the value of the New Zealand dollar during the month.
“The rising crude oil and refined prices are partly due to normal seasonal fluctuations and slowly improving global demand, especially from Asia. However, international market analysts expect the increased competition in the refinery sector could put downward pressure on imported petrol and diesel prices in the coming months.”
AA PetrolWatch warns that taxes on both petrol and diesel will be increasing this year.
The Emissions Trading Scheme will add about three cents per litre to the cost of both fuels from 1 July, with another three cents per litre being applied to petrol excise in October. “Coupled with an expected increase in GST to 15%, petrol could end up costing another 10 cents per litre by the end of the year, with diesel rising about six cents per litre,” says Mr Stockdale.
5 Comments
Just another reason to use the train
The three taxes mentioned would take the price from $1.82 to $1.92. This means that despite the regular uptrend in crude oil prices over the last 12 mounts the AA thinks the cost of refined petrol will stay similar. Personally I expect a larger rise. Hopefully the reduction in vehicle use due to these higher prices will allow for more prudent use of our infrastructure budget.
ever seen full metro buses in a town of 26,000? that is what it was like in Timaru.
Cheering the price increases here. Anything to stop the motorway orgy.
Agreed Max. And the few cents a litre petrol tax rises will be nothing compared with what happens when demand starts to hit that 85 million barrels per day threshold that it was at back in July 2008.