Pumping up the price of petrol in the South

Petrol prices that have reached record levels in New Zealand mean even higher prices in the South, as distance from main centres pushed the price to almost $2.45 a litre in one Otago town.

Oil companies yesterday blamed the price hike on international disruption to oil supplies from countries such as Iran and Venezuela.

The Automobile Association noted taxes on a litre of petrol had topped $1 for the first time.

Petrol prices hit almost $2.45 a litre in Wanaka yesterday. Photo: Mark Price
Petrol prices hit almost $2.45 a litre in Wanaka yesterday. Photo: Mark Price

Prices nationally surged to $2.30 a litre for 91-octane fuel. The previous high of $2.27 was in mid-2013.

Wanaka topped the list of centres surveyed by the Otago Daily Times yesterday, where two stations were selling 91 octane at $2.449c a litre.

BP spokeswoman Leigh Taylor said the price was influenced by various factors, including the cost of refined oil products on the international market, the exchange rate, international and local shipping and logistics costs, taxes, levies and local operating costs.

In the past month, the New Zealand dollar had weakened against the United States dollar.

And in the past week, there had been news of impending US sanctions that would affect Iran's energy industry, and of declining output from Venezuela, meaning there had been a significant increase in crude oil prices.

That meant crude was at its highest level since late 2014.

''These factors are having a significant impact on BP's refined product cost and therefore have also impacted prices at the pump.''

Ms Taylor said there were more than 20 brands in the New Zealand market, and there was ''definitely competition''.

''The other factor would be logistics costs.

''We have to ship fuel from the refinery down to the South Island and then truck it round the island as well to get it to the different stations, so that does impact on the price.''

AA petrol pricing spokesman Mark Stockdale said the ''so-called national price'' had hit almost $2.30 a litre last Friday.

The South had less competition, but aggressive competition in the North Island meant prices could be lower there.

Mr Stockdale said the other record, ''one we don't want to have'', was the more than $1 a litre motorists paid in tax.

ODT Graphic
ODT Graphic
Most tax on petrol was fixed, but the GST component was a percentage, meaning more money to the Government.

At the pumps in Dunedin yesterday, Wayne Roberts, of Mornington, described the price as ''shocking''.

''How are we meant to carry on with our day-to-day stuff when this happens?''

North Dunedin's Jack Ringhand, originally from Wisconsin. said the price was a lot higher than in the US.

''It has taken some adaptation, having to factor in the extra expense.

''It's a bummer.''

david.loughrey@odt.co.nz

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