Subscribe to RSSOil Price 30-Month High
The price of oil continued to rise during February, jumping US$15 a barrel (15%) to reach US$115, a figure not seen since August 2008.
The rising cost saw a litre of 91 octane petrol increase 3 cents per litre to $2.03 per litre in our main centres, with diesel rising 6 cents to $1.43 at most stations.
AA’s latest Petrol Watch says the imported cost of petrol has risen 10 cents per litre since the last pump price rise on February 16, which is double what the oil companies have passed on at the pump, and their costs have increased again since then.
AA’s Mark Stockdale. says that unless oil prices drop, expect another price increase in the coming days (although it is expected Christchurch will remain exempt to reduce the risk of panic buying).
The last time oil prices were this high, 91 octane petrol cost $2.03 per litre – but petrol taxes were 13 cents lower. Yet diesel, which has no fuel excise, was $1.80 per litre due to a higher commodity price relative to petrol at that time. At current prices, the imported cost of petrol makes up $1.10 of the retail price of a litre of petrol, and taxes another 89 cents.
We do motorists decide they can't afford it anymore?
The net imported cost of petrol has risen 13% in the past week, and diesel 10%. Allowing for the exchange rate, that equates to an extra 11 cents per litre for petrol (and 10c for diesel), which is double what the oil companies have passed on.
The last time oil prices were this high, in August 2008, we were paying $2.03 per litre for 91 octane – but taxes were 13 cents lower. By comparison, the price of diesel, which has no fuel excise, was $1.80 per litre, due to a higher commodity price relative to petrol at that time. At current commodity prices, the imported cost of petrol makes up about 110 cents of the price of a litre of petrol – and taxes another 88 cents (with taxes up 10c during 2010).
Mark Stockdale says ordinarily, the big jump in oil prices due to the crisis in major oil exporter Libya would have led to a large increase at the pump in New Zealand during February, but the oil companies held off raising prices until March due to the Christchurch earthquake and the need to maintain fuel supplies into the city. Even then, the oil companies have chosen not to increase prices in Christchurch for the foreseeable future.
Motorists are still buying new cars despite the petrol price rise.
MTA says today that new car registrations last month were up 12.6% on February 2010, with commercials running 15% ahead of last year.
Four cylinder cars led the way.
New passenger car sales of 4,844 units were up 542 units (13%) compared to February 2010 but 1,366 units (22%) down in January 2011.
Toyota led passenger car sales with 785 units for a 16% share of the market, followed surprisingly by Hyundai with 548 units and an 11% share, with Suzuki in third spot where Suzuki’s sales of 468 gave them a 9% share.
Suzuki Swift also took the top spot as leading passenger car, with sales of 351 units, followed by Hyundai’s I30 with 310 units and perennial favourite Toyota Corolla back in third spot with 212 sales.
Commercial sales of 1,560 units were up by 203 units (15%) compared to February 2010, and encouragingly also up by 247 units (19%) compared to January 2011.
Used import car sales of 6,527 units were 234 units (3%) lower than February 2010 and 541 units (8%) lower than January 2011. For the year to date, used import car sales remain virtually unchanged, ahead by just 6 units.
The motorcycle market, while still below the levels of previous years, did however show some signs of life, possibly as a reaction to increasing fuel prices. Sales of 554 units was 47 units (9%) higher than January 2011 although 154 units (22%) lower than February 2010. For the year to date, motorcycle sales are still behind 2010 by 364 units (26%).
1 Comments
There’s actually nothing surprising about people buying new cars in the face of rising petrol prices, because they’re more efficient than older ones. It’s surprising when people buy new SUVs as petrol prices are rising, but the trend to new 4-cylinder cars that largely have engine sizes less than 2L (judging by the top sellers) is just economically rational. Especially when we have a Minister of Trucks and Minister of Finance who don’t think people will change their driving addiction in the face of higher petrol prices and thus consider public transport to be unworthy of taxpayer support.