KEY POINTS:
The cost of petrol at the pump has hit a new high after BP raised its prices at the pump 179.9c for 91 and 185.9 c for 93.
Shortly before noon Caltex followed suit while Shell prices remained steady at 177.9c and 182.9c.
A Shell company spokesperson told NZPA that prices were reviewed daily and international oil prices could force a rise while Mobil declined to give a price over the phone.
Automobile Association spokesman Mike Noon said AA had not predicted BP's latest price rise and the organisation was encouraging motorists to shop around.
"Oil company margins by our tracking were high in the previous week and unless they have information we don't have, we would be saying that we don't think there needed to be an increase today," Mr Noon said.
He said the refined price had gone up in the last few days but the dollar had remained stable.
Mr Noon said when he was initially told of the price hike, he thought it was an April's Fool joke.
"But for a lot of New Zealanders, that's not something you joke about," he said.
Mr Noon said there was still competition in the market and the supermarket receipt campaign had kept prices down.
BP spokeswoman Diana Stretch said she was not aware of the information that the AA had but the company had to been absorbing international price rises in refined fuel.
"We've been taking the hit for quite some time," Ms Stretch said.
When asked if the company was prepared to wait for the drops in crude oil to affect the price of refined fuel, Ms Stretch said the company did not have a "crystal ball".
Ms Stretch said diesel had increased by 17 cents since the end of February when the price was $1.289. It is now $1.389.
She said the cost of petrol internationally had also risen 5 cents, excluding GST. She said BP has increased the price at the pump by 5 cents, including GST, so far this month.
The price rises come despite the international cost of crude oil plunging by US$4 a barrel overnight.
Sharon Buckland is the spokeswoman for Chevron, the company that owns Caltex. She said the price of crude has risen to US$105 today.
"It's very volatile and to be fair we've held the price while it has been volatile," Ms Buckland said.
The cost of US crude hovered at US$101.58 overnight. The plunge comes hot on the heels of Friday's drop that saw US$3.47 shaved off the price.
Reuters news agency quoted analysts as saying the cuts were a result of the relative peace in Basra, Iraq.
The fighting between Government forces and Moqtada al-Sadr's Mehdi army ended on Monday after truce was called by the Shi'ite cleric.
- NZHERALD STAFF
