Subscribe to RSSAA Says Petrol Too High
AA believes a drop in the price of both petrol and diesel is warranted.
“Lately the AA has noticed the oil companies are only moving prices up or down two cents per litre, when in the past they would have dropped four cents at the current margin. Pricewise, the market doesn’t seem to be as competitive as it once was. This is of concern and AA PetrolWatch will continue to monitor this situation,” says AA PetrolWatch’s Mark Stockdale.
After a month of no price changes, October bought a price shock to motorists with petrol prices rising 11 cents during the month, mostly due to scheduled tax increases.
The price of a litre of 91 octane petrol rose from $1.74 in the main centres to $1.85 by mid-October. The diesel price rose six cents from $1.19 – where it’s been since July – to $1.25 per litre.
Petrol up but cars pour into CBD
The October price rises have been the biggest all year, and most of that has been due to the tax increases. The GST rise added four cents per litre to the price of petrol, and three cents to diesel. Excise duty on petrol also rose three cents at the same time.
On top of that, the price of oil has risen sharply since August, breaking through the US$80 a barrel barrier for the first time since April. This added another four cents to the price of petrol, and three cents to diesel.
“The latter increases are, however, a little surprising because the value of the kiwi dollar has risen during the month,” he said.
“When you consider there has been a recent decline in commodity prices, the oil company importer margin – the difference between the retail price and landed cost of fuel – is certainly at the high end of the range, especially for diesel.”
7 Comments
What is more surprising, that the oil companies put petrol up as quick as possible or that the AA thinks that the price of petrol is to high?
The AA needs to realise that people are members not for the lobbying but rather for their breakdowns service. I know several people who refuse to join them because of their anti-PT and pro-car stance.
does the AA not realise that the price is only going to go one way from here on out?
Thats a fine point you bring up there rtc. I do fit into that category. We also have to realise that we have some of the cheapest petrol sold right here in clean green New Zealand.
Petrol is too cheap, we not 50 cents a liter petrol tax in my opinion.
my personal opinion on petrol is that they should have tax on them (5c a litre maybe) within the centres with alternative transport and give the extra tax for the PT system.
In other new, junkies claim price of heroin is too high.