KEY POINTS:
Hefty fuel price increases yesterday have disappointed the Automobile Association (AA).
AA director of motoring affairs, Mike Noon, said though the price increase was inevitable, he was surprised by the size of it.
"We would have liked to have seen more agitation from the other companies," he said, referring to the blanket six cent price rise from all the major companies .
Regular unleaded petrol increased to 143.9 cents per litre, premium to 148.9 cents per litre and diesel to 99.9 cents per litre.
BP reportedly led the charge yesterday morning, with the other companies following shortly afterwards.
That the price was going up was expected, Mr Noon said.
"But the size of the increase is pretty disappointing. Six cents is a big jump."
Though the price hike wouldn't financially cripple motorists, it all added up, Mr Noon said.
"On a 50 litre tank, it would add about three dollars. Three dollars in every car in the country is a bit of cash," he said.
Caltex spokeswoman Sharon Buckland said a number of international pressures were driving prices up.
"There are indicators in the marketplace. The demand for winter fuel in the Northern hemisphere, and in his State of the Union Speech [United States President] George Bush spoke of doubling the US strategic oil reserve.
"Also, the New Zealand dollar has eased off a bit as well, which doesn't help things," Ms Buckland said.
There was no elaborate system for communicating how much each competing petrol company would change its prices by, she said.
"We go outside for a walk and look at the signs outside the other petrol stations. It is not nearly as conspiratorial as some people believe," she said.
"It is a bad thing, but at least it happened after the holiday period."
BP spokeswoman Diana Stretch said the increases were due to the international cost of fuel.
"The refined cost has increased by 12 per cent since the last increase at the pump in New Zealand," she said.
Shell New Zealand spokeswoman Jackie Maitland said the increases were to "maintain competitive advantage ".
She cited rises in the prices of crude oil and the weakening New Zealand dollar as causes for the price increase.
Mobil spokesman Peter Thornbury said his company also raised fuel prices yesterday afternoon by six cents. He said there was no one factor responsible for the price rise.
"But we have noticed a significant tightening of margins recently," he said.
- NZPA
