Motorists will face petrol price rises tomorrow, with a three cents a litre government tax increase, although one oil company says it will not pass on the full amount immediately.
"We are going to be absorbing a component of it," BP spokesman Jonty Mills said today.
Discount oil company Gull said it would wait until tomorrow morning to assess its margins before seeing if it could absorb some of the tax rise, if only for a day or so.
"We might be able to do something short-term but I am not sure about the long term," said retail manager Graham Stirk.
But Z spokesman Jonathan Hill said his company would simply pass on the tax rise as a straight cost imposed by the Government.