Motorists were feeling the pain at the fuel pump after a marked jump in prices yesterday. Photo/File
Motorists were feeling the pain at the fuel pump after a marked jump in prices yesterday. Photo/File
Rising fuel prices are hitting Tauranga motorists in the pocket with some stations selling 91 for up to $2.20.
Prices at the pump in Tauranga varied as much as 18 cents a litre for regular 91 and 22 cents a litre for diesel yesterday.
According to AA figures, the price of 91 has risen by nearly 20 cents a litre since January when it was $2.129c a litre.
But the co-owner of Caltex on Otumoetai Rd, who did not wish to be named, said rising fuel prices was not something they had a lot of control over.
"Lots of our of customers have been complaining about the prices, but we're only a small operator and have quite a bit of competition from the two other stations in this area.
"We are trying to keep our prices down as much as we can but we have no control over the prices we have to pay our suppliers," she said.
One customer filling up at the Caltex yesterday said the increased fuel prices were definitely hurting some people but there was little most operators could do.
"This is not the first time there has been a significant rise in prices, and I think we all have to grin and bear it for a time until the prices come down again," he said.
Prices for regular 91 varied yesterday from $2.02 a litre at Gull on Hewletts Rd to $2.20 at BP in Gate Pa and Caltex in Greerton.
Diesel prices were also markedly varied from $1.32 a litre at Caltex in Otumoetai to $1.54 in Greerton.
The average price of 91 at six different petrol stations back in November in Tauranga was $1.977 cents a litre, with Z on Cameron Rd the most expensive at $2.029 a litre.
Data from fuel comparison site Pricewatch showed fuel price increases had hit every region across the country.
The cheapest price in Rotorua yesterday for a litre of 91 was $1.93 at Gull in Te Ngae Rd and the most expensive was Z on Fairy Springs Rd at $2.22.
In Auckland the lowest price for 91 yesterday was $2.01 a litre while diesel prices ranged from $1.26 to $1.47 a litre.
AA petrol price spokesman Mark Stockdale said it was not only companies affecting fuel prices - the Government also had the power to bring prices down.
He wanted the Government to stop charging GST on fuel excise, a move which would see prices drop 10 cents a litre immediately, he said.
Motorists were feeling the pain at the fuel pump after a marked jump in prices yesterday. Photo/File
"Taxes, including a nearly 60c per litre excise, made up a large chunk of fuel prices, something many motorists may not realise," he said.
Ken Shirley of the Road Transport Forum NZ said further rises of up to $3 a litre were "not out of the question".
The depreciating kiwi dollar and a spike in crude oil prices thanks to the US pulling out of the Iran deal were likely to lead to rising fuel prices domestically, he said.
"There is no much you can do about fluctuating global oil prices. One thing we can address is there's quite a regional variation across New Zealand."
Shirley criticised the Government's regional fuel tax, which would add 11.5c a litre to fuel for Auckland motorists from July 1, said the policy was "nonsense".
When asked if the Government would look at fuel taxes in light of the increase, Finance Minister Grant Robertson said the focus was on ensuring anti-competitive behaviour was not contributing to ratcheting up the price.
"That's exactly why we are beefing up the powers of the Commerce Commission, so they can do the market studies that identify what is actually going on here."
Energy Minister Megan Woods said she was working with officials to see what the Government could do until new powers came into effect to compel fuel companies to provide information on pricing.
"We are really concerned. We want reassurance that people are paying a fair price when they fill up their cars and we are doing the work to make sure we have all the information we need to give people those reassurances," she said.
Z Energy spokeswoman Sheena Thomas told Newstalk ZB the price rise was justified and largely driven by a rise in prices on the international market.
She said international increases get passed on to customers.
Z's profit margin was around 5 cents a litre after it pays expenses such as wages and electricity.
Thomas said not much can be done to decrease the price at the pump without international prices easing.
