BP Leads today's 5c price hike, the second in less than a month.
BP led today’s price hike, by raising the prices of all fuels including diesel by 5 cents per litre this morning, making it currently 182.9 NZ cents/litre for Regular 91, and 115.9 cents/litre for Diesel.
With the current exchange rate this equates to $4.84 US per gallon for Regular 91, and $3.07 US per gallon for Diesel.
This comes hot on the heels of last week’s 5 cent per litre price increases, seeing the price of fuel leap 10 cents per litre in less than a month. This increase pushes the average ownership cost per-kilometre of a typical 2.0 litre sedan well over the $1 per kilometre mark, compared to 0.88c per kilometre in late 2006 – when Regular 91 gasoline cost $1.29 NZ per litre (source AA NZ)
The blame has been laid squarely on the international increase in the cost of crude oil. This has affected many countries recently, including the USA which experienced increases of around 5 to 10 cents per gallon during the past two weeks.
More increases are expected in the near future as the international economy recovers and the demand for fuel exceeds 2009 levels. At the current rate New Zealand motorists could expect to again break the $2 NZ per litre ($5.30 US per gallon) barrier before Christmas this year.
In order to increase economy, motorists are recommended to check their tyre pressure, limit their driving and remove unnecessary items from their cars to reduce weight.
These increases will add pressure to major manufacturers to add more fuel efficient vehicles into their line-ups, as well as begin their reluctant and long-overdue electric vehicle plans before fuel prices approach the distant, but inevitable $3 NZ per litre ($8 US per gallon) mark.
