Petrol breaks $2 per litre mark

Published: 1:15PM Thursday May 22, 2008 Source: Newstalk ZB/Reuters

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All petrol has gone above the $2 a litre mark.

The cost of 91 at some BP stations is now $2.00.9 cents a litre, while 96 now costs $2.05.9 cents a litre.

Diesel is also continuing its climb. It now stands at $1.73.

The cost of 91 was $1.23 a litre in 2005.

AA spokesman Mike Noon says the prices appear to be unstoppable - with rising prices the whole year which is not usual.

Noon says the low New Zealand dollar and high demand will continue to push the price up.

World oil prices surged more than $3 to a record above $132 a barrel on Wednesday after a US government report showed a surprise drop in crude stockpiles, reinvigorating fears of a worsening supply crunch.

The gains bring oil up more than 30% so far this year in a rally that has raised alarm bells in consumer countries like the United States, already hard hit by a housing slump and credit crisis.

"The market is in a very bullish mood and these statistics will do nothing to change that," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc.

US crude gained $3.30 to $132.28 a barrel by 1625 GMT after hitting a fresh peak of $132.69. London Brent rose $4.09 to $131.93.

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