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Refined Fuel Costs Push Up Petrol Prices

Refined Fuel Costs Push Up Petrol And Diesel Prices

Continued increases in refined (ready-to-go) petrol costs have forced BP to lift its petrol and diesel prices by three cents a litre at its company-owned service stations with immediate effect.

BP’s Managing Director Peter Griffiths said that BP had continued to absorb costs since the last price increase on August 7th. Since early July, the cost of refined petrol has risen by around NZ$10.00 a barrel - the equivalent of around 7 cents a litre - to a new high of approximately NZ$86 a barrel. The increase in refined diesel costs (of NZ$14.50 a barrel) has been even greater.

BP buys about half its petrol as ready-made fuel from overseas refineries. Marsden Point Refinery in Whangarei does not have the capacity to manufacture all of New Zealand’s petrol needs.

Crude oil has also increased in cost over the same period - by around NZ$3 a barrel.

Mr. Griffiths said that refined product costs are driven by supply and demand. “This means that the current high demand in the United States and in Asia is affecting motorists in New Zealand.”

“BP monitors its price levels every day, with a view to bringing the best deal possible to our customers. We have kept our petrol prices to a minimum in the hope that refined product costs would reduce. But this hasn’t happened - and when BP is only making 1 cent a litre, there is only so much increased cost that we can absorb.”

Mr Griffiths said he is very aware of the affect that petrol price increases have on the wider community. “BP does not like increasing its prices. Like most of our customers, we have also been faced with increased costs. When our costs start to reduce, we will pass those on to our customers.”

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