AA: Fuel price rise will really hurt in October

Photo / Peter Meecham

Motorists stung an extra 3c a litre of fuel by the new Emissions Trading Scheme will have a lot more to complain about in October, warns the Automobile Association.

Petrol and diesel prices have risen by that amount at most pumps since the scheme was introduced on Thursday, with some exceptions.

The AA says the ETS-driven increases are no greater than normal fluctuations in fuel prices, so they won't be enough to persuade motorists to reduce their carbon footprints.

Spokesman Mark Stockdale expects 7c increases in GST and the general fuel tax in October to have a far greater impact on customer demand.

GST will account for 4c of the next impost on motorists, at current pump prices, and fuel excise for 3c.

Last night, petrol was selling at most main-centre pumps for 178.9c a litre and diesel for 120.9c.

Oil industry minnow Gull's 29 North Island service stations were exceptions. The Australian-owned firm has promised to hold its prices to pre-ETS levels until at least Monday.

It was selling standard 91-octane petrol last night for 174.9c a litre, its 10 per cent biofuel blend for 173.9c, and diesel for 114.9c

Gull says it sold 45 per cent more fuel than usual on Wednesday, as many motorists filled their tanks in anticipation of higher prices.

General manager Dave Bodger said an easing in international fuel prices over the past week had allowed his company to absorb an initial cost from the scheme of $12.50c a tonne of carbon, which is half of the estimated true cost.

Although that easing had been largely cancelled out by a decline in the value of the New Zealand dollar, he said Gull hoped to hold its prices beyond Monday if possible.

Motorists filling up yesterday in Auckland appeared largely resigned to the latest price shift.

"I'm not happy with the increase but there is nothing we can do about it," said Brett Dyson.

Cath Montgomery was also unhappy, saying she was unable to modify her travel because public transport did not meet her family's needs.