Soaring Oil Costs Force Petrol/Diesel Price Rise

BP Oil New Zealand Ltd is lifting the price of petrol and diesel by four cents a litre at its company-owned service stations with immediate effect.

The increase takes prices at most BP company-owned service stations in the main centres to $1.09.9 (Unleaded 91) , $1.14.9 (Premium Unleaded) and 71.5 cents for diesel.

BP will also lift its wholesale petrol and diesel prices - what it charges privately-run BP service stations pay for fuel - by four cents from midnight tonight.

The increase is due to surging product prices (refined petrol and diesel), which have jumped significantly over the past fortnight - and high crude oil prices.

BP imports about half its petrol as refined product. Since the beginning of this month the cost of ready-made petrol has risen by around $NZ8 a barrel and diesel has risen by about $NZ6.
Also adding to today’s price rise is the cost of crude oil which has jumped by around $NZ4 a barrel since June 1.

BP’s Managing Director Peter Griffiths said it was a concern that OPEC had not increased production despite the barrel price passing the $NZ54 mark. OPEC had previously said they would start to boost output once this figure was reached.

“There is squabbling within OPEC countries over whether production needs lifting at all, and recently we have seen doubt creep into the market that OPEC would in fact lift output when it meets next Wednesday. The end result, unfortunately, is higher prices at the pump.”

ENDS

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