Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Lower petrol prices match falls in commodity prices

Lower petrol prices match falls in commodity prices


Petrol pump prices fell 4 cents per litre during August, but there was no change in diesel prices. Excluding sites discounting pump prices, the cost of petrol at most service stations in the main centres ended the month on $2.18 per litre, with diesel unchanged at $1.48 per litre.

“The reduction in pump prices is mostly due to falling commodity prices. Petrol commodity prices fell US$14 a barrel to the lowest level since November 2013 but diesel commodity prices only fell US$3 a barrel in that time,” says AA PetrolWatch spokesperson Mark Stockdale.

Allowing for the 4 cent drop in the exchange rate during that time, the reduction in commodity prices meant the imported cost of petrol fell just over 6 cents per litre, while the cost of diesel only fell one cent.

“Last November we were paying $2.12 a litre for 91 octane while the exchange rate was about the same and the excise tax on fuel was 3 cents less. Unfortunately, commodity prices had started to rise by the end of August,” Mr Stockdale said.

According to AA PetrolWatch, some retailers increased petrol and diesel pump prices by 2 cents per litre on 1 September.

Recent movements also illustrate why changes in oil prices aren’t directly comparable with pump prices for fuel.

“The commodity price for petrol fell much more than oil and that’s the benchmark that influences the price Kiwis pay at the pump. Oil prices fell over 5 per cent in August but, if we were using that as a benchmark for pump prices, the drop would have been fully offset by the fall in the exchange rate,” Mr Stockdale added.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news