-
Oil pump - Source: Reuters -
Watch Video
-
Related
Petrol prices have risen to their highest level for more than a year and there are no assurances it will come back down.
Every litre of 91 and Premium Octane is eight cents more expensive than it was last week with oil companies hiking their prices twice in the last six days.
BP has raised the price of 91 another five cents to $1.82.9 and diesel is up three cents to $1.15.9. Caltex has followed suit.
"We have a responsibility to our shareholders to make a profit and if we don't make a profiit we won't still be able to operate in New Zealand and we are committed to New Zealand," says BP spokesperson Diana Stretch.
Shell has also increased its prices but only by 3 cents. It is now selling 91 at $180.9 and diesel at $115.9.
Mobil has followed Shell, putting its petrol and diesel up by three cents per litre.
The companies are blaming the fluctuating fuel price on the Singapore market and a weaker Kiwi dollar.
Gull has yet to move their prices.
All the major petrol companies raised their petrol prices by 5 cents a litre on March 5.
AA PetrolWatch spokesman Mark Stockdale says it is the highest point in about 18 months.
"Motorists actually remember what that was like, back in 2008 when we had those really high prices. So I think it's getting a little bit uncomfortable for motorists just at the moment," he says.
AA PetrolWatch reported last week that retail fuel prices had remained unchanged since January 19, when they fell 3c a litre across the board.
Crude oil and refined petrol prices rose between 4% and 6% during February, with refined diesel up 10% - reducing oil company importers' margins.
In April 2008 petrol rose at a record rate from $1.80 to $2.17.8 in July of that year.
But thanks to a steady supply of oil, some say there is little chance it will reach those record highs.
That period was before the recession struck, and UBS Investment Bank senior economist Robin Clements does not think fuel prices will rise as high this time.
"Our feeling is that the circumstances that brought about the extremely high global prices in late 2008 were very unique. Now we think circumstances are rather different," she says.
