BP sets new high for price of diesel

BP has set the highest diesel price yet, a move the Automobile Association says is hard to justify.

BP led the second fuel price jump in a week, increasing petrol 4c a litre and diesel 5c a litre on Wednesday, with other major oil companies following on petrol only yesterday.

A litre of BP diesel is now the most expensive it has ever been - $1.30 a litre.

Unleaded 91 petrol costs $1.75 a litre at all petrol stations and diesel remains $1.26 a litre at all pumps except BP.

BP spokeswoman Greta Shirley said the cost of refined fuel had risen nearly 8 per cent this month, compared with a rise of only 2.2 per cent at the pump.

The price pressure had been dampened by a strengthening New Zealand dollar, but not enough to hold off an increase.

AA spokesman Mark Stockdale said though crude oil prices had hit record highs - breaking through the US$100 a barrel level - there was typically a lag before refined fuel prices followed.

Fuel prices also increased across the board by 4c a litre last weekend, which Mr Stockdale said was justified and just reversed a drop in fuel prices the previous week.

But he said the latest rise was pushing it.

"We can't quite see why it should have gone up."

He said it was pleasing to see the other big companies holding off for a day before following BP.

However, it was only a matter of time before oil prices reached consumers.

"The crude price is not a good sign," he said.

- © Fairfax NZ News