More fuel price rises on horizon

JASON KRUPP
Last updated 05:00 12/02/2013
Opinion poll

Would you feel the pain if petrol prices rise again?

No - what price is petrol anyway?

Not yet

Yes, it's starting to bite

Vote Result

Relevant offers

National business

Globelet lifts its sights from festivals to whole cities Pooches at the pub: Hamilton's The Keg Room offers a specially-prepared menu for dogs Budget Buster: How to get away with regifting Christmas presents American mother-son duo bring Wine Condoms to New Zealand Palmerston North warehouse told to pay most of the bill for city services White House website promotes Melania Trump's modelling and jewellery line It's a steal: $24,000 for 'platinum experience' at Australian Open men's final Mark Hotchin returns to New Zealand but critics say Hanover investors unlikely to forgive Fashbae founder Bridget Thrackwray Shamubeel Eaqub: 2017, welcome to the era of populism

After the latest round of petrol price hikes last week, economists and energy sector professionals are warning motorists to brace for even more shocks at the pump.

On Friday BP, Mobil and Z Energy lifted petrol prices by as much as 4 cents and diesel by 2c a litre, with all three major retailers now selling 91 octane for 217.9c a litre, and standard diesel for 151.9c a litre.

The rise comes on the back of increasing input costs, with Brent Crude trading at a nine-month high of US$118.85 a barrel yesterday, up from sub-US$90 lows seen in July last year.

BNZ economist Doug Steel said consumers had largely been shielded from the near 30 per cent jump in energy prices by the New Zealand dollar, which marched in step with commodity prices over the past three quarters.

However, the trend appeared to be "diverging", he said.

The kiwi recently traded at US83.41c, at the bottom of a one cent trading band the currency has been stuck in for much of this year.

Meanwhile, crude oil has gained 7 per cent over the same time frame. "International (energy) prices have certainly outstripped gains in the kiwi in the last while," Steel said.

Mark Stockdale, of AA PetrolWatch, said the commodity price reflected the fact that the days of cheap oil from the Middle East were nearing an end.

The supply gap is being filled by energy produced from alternative sources, such as oil sands, but these come at a price.

Meanwhile, on the demand side of the equation, the slowly recovering global economy is expected to see demand for oil increase over the course of the year.

Ad Feedback

- BusinessDay.co.nz

Comments

Special offers

Featured Promotions

Sponsored Content