Oil up US$16/barrel, petrol and diesel up 5 cents

Media Release: 2 March 2012

PetrolWatch – February 2012

Oil up US$16/barrel, petrol and diesel up 5 cents

The difference between the price of oil and what motorists pay at the fuel pump was highlighted in February.

While the price of a barrel of oil rose US$16 a barrel during the month, retail fuel prices climbed 5 cents per litre over the same period.

“Under normal circumstances, a US$16 rise in the price of oil would equal a 16 cent increase in pump prices,” says AA PetrolWatch spokesperson Mark Stockdale.

“So if people were just monitoring oil prices they would have expected a much bigger increase than 5 cents a litre, but lesser increases in commodity prices for refined fuel and a rising exchange rate have meant only a moderate increase in pump prices.”

“The AA’s monitoring of all variables shows the imported cost of fuel was up about 5 cents a litre since the start of the month.”

The price of a litre of 91 octane petrol began the month on $2.12 a litre before dropping 3 cents after the AA called for a price cut. It then rose back later in the month to end on $2.17 in the main centres. Diesel began the month on $1.50 a litre at most services stations, ending the month on $1.55.

Oil prices have risen to US$125 a barrel, their highest level in 10 months, due to rising tensions in the Middle East, and growing global demand According to AA PetrolWatch, the last time oil prices were this high, motorists were paying $2.19 for a litre of 91 petrol and $1.67 for a litre of diesel.

Mr Stockdale says with oil prices still rising and the exchange rate at its highest level since August 2011, motorists should expect further price increases.

• For more information, go to: www.aa.co.nz/aapetrolwatch

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