Petrol prices highest in 18 months

Petrol prices are at their highest in 18 months after BP and Caltex hiked prices by 5 cents a litre - the second price rise in a week.

The rise put the price of 91 unleaded up to $1.82.9.

Diesel prices also went up 3 cents a litre, to $1.15.9 a litre.

Shell, Mobil and Gull had not yet followed but told Radio New Zealand they were reviewing their prices.

All the major petrol companies raised their petrol prices by 5 cents a litre on March 5.

AA PetrolWatch spokesman Mark Stockdale told NZPA the weaker exchange rate was partly to blame for the price rise.

Petrol was "hitting an uncomfortable price point" and motorists would be feeling nervous after prices passed $1.80, he said.

AA PetrolWatch reported last week that retail fuel prices had remained unchanged since January 19, when they fell 3c a litre across the board.

Crude oil and refined petrol prices rose between 4 and 6 percent during February, with refined diesel up 10 percent - reducing oil company importers' margins.

In April 2008 petrol rose at a record rate from $1.80 to $2.17.8 in July of that year.

However, that was before the recession struck, and UBS Investment Bank senior economist Robin Clements doesn't think fuel prices will rise as high this time.

- NZPA