Petrol price hikes looming for struggling Northland motorists

The AA says skipping short trips with the car can save cash. Photo / 123rf

Petrol prices, currently around 270 cents a litre for 91 in Northland, are expected to rise by 20 to 30 cents a litre over the next few months.

The cheapest prices for 91 unleaded in the Whangārei district were 254.9 cents at GAS Marsden Cove and 259.7 at Gull Speedlane yesterday, according to the Gaspy price comparison app.

In Kerikeri, the cheapest was at Gull Waipapa, where 91 was 252.7 cents a litre.

Whangārei motorists the Advocate spoke to on Friday were feeling the pinch already, with prices well down from the highs of over $3 a litre earlier this year.

Brett Harvey said prices were "ridiculous" and there was huge volatility, even over the course of a few days.

"They put it down for 24 hours and then they put it up again," he said.

Prices at Gull Whangārei on Friday were among the lowest in the region. Photo / Angela Woods

Fellow motorist Rose, who did not want her last name used, said she used to spend $100 on petrol to get to work and she now spends $175.

She said some people were struggling at the moment and "can't afford to feed their kids".

Terry Collins, principal policy advisor at the Automobile Association (AA), said prices would likely be affected, if they hadn't already, by Opec's announcement of a cut in oil production on Wednesday.

"We're yet to see what happens but I have seen some price points go up - it's sitting at about $95 a barrel as a consequence."

Although there was no certainty around future price rises, Collins said, sanctions on Russian fuel tankers being put in place in December would affect the cost of petrol.

"In March, there's another set of sanctions that go on the Russians and that's on their refined product in Europe," he added.

Collins said petrol prices would likely still rise by between 20 and 30 cents a litre by that time, with oil prices per barrel likely to rise to between $100 and $110.

"Our highest prices were about $120 in June but our dollar was also a lot stronger then.

"Our dollar's depreciated a lot so we're paying more for it just because of that dollar value."

However, there was some good news on the horizon for drivers, as the Government has said it would consider extending the temporary cut to the fuel excise tax.

It was due to return in January next year, but Minister of Transport Michael Wood told Three's AM show on Friday that the Government would consider extending the petrol tax cut again.

The tax was 29 cents a litre as the 25-cent tax had GST added on top of it.

The AA expected the tax would not be put back on in January, Collins said.

Prices at BP on Maunu Rd on Friday. Photo / Angela Woods

"We've predicted that they won't do it - I can't imagine they'll do it in an election year."

Collins said there would a number of things people could do to cut fuel consumption, including checking tyres were inflated properly and taking added weight out of their cars.

"Even little things like if you're using 91 regularly and you've got a fuel-injected car is to put an injection cleaner into it every 5000 kilometres," he added.

The most important change people could make was cutting down on short trips, Collins said, such as driving to the dairy to buy a loaf of bread.

"We do know that a lot of trips are made over very short distances... our advice is don't do that - walk down," he said.

"Realistically those short trips are the most inefficient trips you can make."