KEY POINTS:
Change vehicles, step off the gas pedal, or clip coupons if you want to save on petrol, because the global credit crunch is pushing up pump prices, says Automobile Association spokesman Mike Noon.
International traders were helping to boost the price as oil increasingly came to be seen
as a "safe" commodity, he said yesterday.
His comments came as petrol reached record prices at the pumps, and continued its climb towards the $2-a-litre mark.
BP raised its per-litre prices to 179.9c for 91 and 185.9 for 93 premium in the morning, and Caltex followed suit around lunchtime.
Spokeswoman Diana Stretch said the price rise came only after the company had itself been forced to absorb price rises in refined fuel.
But the increase surprised Mr Noon, as the AA monitors petrol price margins that last week appeared to be "quite high".
To add insult to injury, the increase comes after falls in the price of crude.
Prices plunged $4 to below $102 a barrel on Monday as a week of heavy fighting in Iraq's oil port city of Basra ended and officials predicted a recovery in crude exports from the hub within a day.
US crude settled down $4.04 to $101.58 a barrel after trading as low as $100.25, extending losses from Friday. London Brent crude fell to $100.30.
Mr Noon said crude prices did not usually have an immediate impact on prices at the pump, though likely would in the longer term.
Geopolitical factors, global supply and demand, and the trading markets were the chief determiners of refined petrol prices, he said.
The new price is another step for the price of petrol towards $2 a litre, a milestone that could become a reality if a number of proposed initiatives come to pass.
Biofuel additives to petrol could knock the price up as much as 7c a litre, and an Auckland fuel tax could add a further 10c.
Carbon trading schemes could add yet another 7c to the cost of a litre of petrol, Mr Noon said.
But there was some hope for those looking to save money at the pump.
A "sensible driving style" could see savings of up to 25 per cent in fuel usage, while avoiding peak-hour congestion also reduced consumption.
Driving with properly inflated tyres and being careful not to be too heavy-footed would also see motorists visiting the pump less often.
Supermarket coupons could also give savings of up to 20c a litre, he said.
C'EST LA VIE, SAY DRIVERS
Motorists were philosophical yesterday about yet another jump in the price of petrol.
"It's pretty harsh, but I guess you have got no choice really," said IT specialist Carl Brett of Greenlane.
Mr Brett spends about $105 a week on petrol, but needs his vehicle for work, which prevents him from taking public transport. "If somebody on the North Shore rings me up, I have to go to the North Shore."
Though his car is only a 2-litre, ever-rising petrol prices could force him to look for a more economical model.
Glen Eden towie Brian Lineham says high petrol prices have forced his family to cut back on weekend trips in the car, and to be more careful when they are motoring.
"There's nothing we can do about it, though, is there?"
Increases in the price of diesel - which powers his towing company's vehicles - meant drivers would be forced to pay more to get their towed cars back.
Diesel has increased by 17c since the end of February when the price was $1.289 a litre. It is now $1.389.
Film industry worker Ellie Callahan described the late price rise as "ridiculous", and believed the Government should be doing something to lower its share of the per-litre price.
With the country looking at a possible recession, Ms Callahan wondered how long "middle New Zealand" would be able to continue absorbing such increases.
She, too, required her vehicle for work, and living in Titirangi, in Auckland's West, meant an expensive commute.
