KEY POINTS:
High-octane petrol is nudging $2 a litre at some pumps after two of the big four oil companies bumped their fuel prices up yesterday - for the third successive week.
The latest increases ratcheted BP's "boutique" 98-octane petrol to 199.9c a litre as the price of United States crude oil soared to a new high of just over US$115 a barrel.
Both BP and Caltex lifted petrol prices by 3c a litre, and that of diesel by 5c, to 151.9c.
Their prices for the most widely used petrol grade, 91-octane, stood at main centre pumps last night at 185.9c a litre.
That makes their petrol 8c more expensive than a fortnight ago, and diesel an even harsher 18c.
But Shell, Mobil and Gull had yet to move by last night, prompting a call from the Automobile Association for motorists to shop around for the best deals.
Shell indicated it would not review its prices until this morning, Mobil could not be reached for comment, and Gull said it would hold out until at least noon today.
That company's New Zealand general manager, Dave Bodger, said it was still selling 91-octane petrol for 181.9c a litre and diesel for 145.9c, leaving its prices 1c below those of Shell and Mobil. Its 98-octane petrol with a 10 per cent bioethanol content remained at 191.9c. Automobile Association spokesman Mark Stockdale acknowledged that international cost pressures were leaving oil companies little choice but to raise prices.
But he expressed alarm that BP's 98-octane petrol had already effectively reached the psychologically daunting $2 mark, even before motorists were hit by a raft of Government imposts.
These will include a 2c-a-litre rise in the accident compensation levy on July 1, which is likely to be followed early next year by carbon emission charges, biofuel recovery costs and regional fuel taxes predicted by BP to lift pump prices at least another 35c.
Mr Stockdale said one way the Government could soften motorists' pain would be to waive the goods and services tax it piled on top of the 42.5c a litre which motorists pay in petrol excise.
"At the moment we are paying a tax on a tax," he said.
Given that the Government collects $95 million a month in GST on all fuel sales, including diesel, the AA believes it could afford to waive the 5.3c it creams off the excise component of petrol prices.
BP spokeswoman Diana Stretch said it was not for her company to comment on such a suggestion, but she acknowledged it was not looking forward to the Government levy increases it would have to pass on to motorists.
Road Transport Forum chief executive Tony Friedlander said cartage firms had no alternative than to pass diesel price rises on to customers, leading to cost of living increases for all New Zealanders.
