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Motorists are now paying more for petrol than ever before with a three cent a litre rise overnight.
Shell, BP and Caltex lifted their prices at the pump overnight. That move takes the price in the main centres to $1.78 a litre for 91 and $1.83 for 95.
AA spokesman Mark Stockdale said that is a cent above the previous record high in July and August 2006 and is concerning given it has come at a time when the New Zealand dollar is quite strong at 80 cents against the US.
Mr Stockdale said while the currency is cushioning New Zealand somewhat from the shock of rises in the price of crude, he is worried about what might happen if the kiwi falls.
One company going against the trend is Gull, who are discounting the price of fuel in a promotional venture by five cents a litre from 7am today until 9am tomorrow.
The company says the move is to celebrate the last test match between England and the Black Caps in Wellington today.
On world markets, oil pierced US$110 a barrel this morning (NZ time), marking the sixth straight day of record highs, as the dollar sank to new lows and outweighed large increases in US crude inventories.
Investors have raced into commodities over the past month to hedge against inflation and the slumping dollar, sending oil to fresh peaks despite concerns about the economic health of top oil consumer the United States and rising fuel stocks.
US crude CLc1 settled up US$1.17 at US$109.92 after racing to an all-time high of US$110.20 earlier. London Brent LCOc1 gained US$1.02 to settle at US$106.27 a barrel, off a record US$106.41 hit earlier in the day.
US consumers already face record petrol prices at the pump due to soaring crude costs for refiners, prompting forecasts for petrol above $4 a gallon in some regions as the summer driving season approaches.
- NEWSTALK ZB, REUTERS
