Petrol price rise 'entirely unjustified'

21:49, Jul 11 2013

Petrol prices have  sky-rocketed to an all-time high, with BP announcing a 4c a litre rise today.

That topped the previous high reached last week. The rise took the price of non-discounted 91-octane petrol to 226.9c a litre, BP said.

Diesel prices have risen by 3c, costing 157.9c a litre.

Chevron said its prices would remain the same. It would review them daily.

Fuel company Z had also increased its prices, AA said.

AA senior policy analyst Mark Stockdale said the increases for both petrol and diesel were premature.

"Our monitoring shows it is entirely unjustified," he said.

AA's monitoring had shown no noticeable increase in diesel commodity prices to justify the rise in price at the pump.

While commodity prices for petrol had risen since last week, it was not enough to justify a 4c increase at the pump, as the increases could have been easily absorbed by fuel companies, he said.

"This is too much, too soon, and not at all reflective of the modest changes in international commodity prices and exchange rates."

Transport industry customers were also set to bear the brunt of the price rises, industry spokespeople have said.

A spokesperson for Road Transport Forum New Zealand said any movements in diesel prices would have an impact on the road freight industry, and costs would have to be passed on to customers.

New Zealand Taxi Federation communications manager John Hart said although taxi companies would try to absorb the price rises as much as they could, there was a limit.

"Eventually cost increases have to be passed on to customers," he said.


Fairfax Media