Petrol price rise looms

Last updated 15:44 13/06/2014

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The price of Brent oil has risen US$3 ($3.46) in the past few days, which could pump up petrol prices here by 3 cents a litre.

But the AA says fuel companies have room to absorb any price increases, though motorists will have to wait until Monday to find out if they do.

A litre of 91-octane petrol now costs motorists 218.9c, while diesel is 151.9c.

But Brent oil prices have recently risen to US$113 a barrel, which equates to about 3c a litre at the pump.

AA PetrolWatch spokesman Mark Stockdale, said the AA did not expect to see increases to diesel or petrol prices, because they were already overpriced.

"Lately, refined commodity prices have actually been falling ... but this is likely to be reversed by the higher oil prices," he said.

"Even so, the AA would not expect to see an increase in diesel prices because diesel pump prices are overpriced at the moment - they should have been falling."

Stockdale said importer margins for petrol were also above average meaning companies could absorb a cost increase of up to 2c.

But any rise in commodity prices above that would probably see retail prices rise.

"We will have to wait until Monday to see what impact that has on refined petrol and diesel commodity prices."

In the United States oil prices have risen to their highest level in nearly nine months because of concerns that unrest in Iraq would disrupt supplies.

But Stockdale said Iraq was not a big oil supplier, and any unrest should not result in a great increase on oil prices in the long-term.

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- Stuff

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