BP backs down on petrol price jump

After raising petrol prices this morning, BP has now dropped those prices citing 'competitive pressure'.


After raising the price of 91 octane by 5.8 cents this morning, BP has dropped prices back 5c to $1.57.7, an increase on the intial price of 0.8c. The small rise is to cover a tax increase.


The price increase comes only a week after the last increase.

The price of 91 octane at 10.30am this morning - $1.62.7 - was the highest it has ever been in New Zealand, according to Mike Noon of the Automobile Association.

Earlier Mr Noon said this morning's rise was completely unexpected.

"I don't think anyone was picking this and as recently as Friday we actually asked the oil companies to hold the 0.8 cent a litre increase and it's obvious they haven't and they've just passed it on."

He said the increase seemed "outrageous" and AA would be calling for a full review of how the fuel was priced.

The AA is also calling for the Government to look at how much revenue it makes from petrol sales and find ways to return the money to the public.

"The Government is making another windfall. If the other companies follow suit petrol has increased nearly 24 cents this year and diesel has increased 30 cents. For every 5 cent a litre base increase in fuel cost the Government makes $29 million in GST.

"A lot of that GST is a tax on a tax," he said.

Other petrol companies said their fuel prices were unchanged at midday, but the pricing situation was being closely monitored.

Caltex spokeswoman Sharon Buckland said the price of refined oil had jumped at the end of last week and remained high today.

Ms Buckland said other factors being taken into account were the approaching summer in the United States, when fuel use typically increased, and the ongoing volatility in Nigeria and Iran.

- NZPA