Despite rising oil prices, the petrol price stayed at $2.19 a litre during April while diesel prices dropped six cents to end the month on $1.64 a litre.
“Although oil prices continue to increase, the rising exchange rate offset these increases, leaving petrol prices unchanged for six weeks and not edging above the 2008 record price,” says AA PetrolWatch spokesperson Mark Stockdale.
During April, the price of oil rose from US$117 a barrel to US$127 a barrel, while the exchange rate climbed from 72 US cents to 80 US cents.
“Under normal circumstances, the price of petrol could have risen by as much as 10 cents to $2.29 a litre, but instead motorists were protected by the stronger kiwi dollar and retail prices didn’t move. In the case of diesel, the imported cost actually fell 6 cents a litre and this saving was passed onto motorists,” said Mr Stockdale.
The AA’s monitoring of oil company importer margins (retail price less costs) shows the margin for diesel is above average, while the margin for petrol is average.
“Based on the AA’s analysis, we believe the oil companies should be dropping the retail price of diesel, while no increase in petrol prices is justified provided our exchange rate remains high,” said Mr Stockdale.
According to AA PetrolWatch, the price of petrol has risen 21 cents per litre, or 10 per cent, this year. It will be costing the average motorist between $9-15 more to fill up a car now compared to the start of the year. For the owner of a small car travelling 14,000km, that equates to an extra $190 a year, or over $340 a year for a large car.
