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Petrol and diesel prices leapt 6c a litre at most pumps yesterday - on the same day Mobil became the first of the country's big oil companies to dip a toe into a biofuelled future.
All four main suppliers were swift to raise their fossil-fuel pump prices in response to a hefty increase of US$10.25 ($13.58) a barrel on Monday night in the ruling rate quoted for refined petrol from Singapore.
Caltex, which insisted such a jump could have justified a 10c retail rise, was soon followed by Mobil, BP and Shell.
That left only industry minnow Gull Petroleum holding out last night at its old prices, which were already 1c below those of the big players, and resolving to wait until this morning to review its bottom line.
But amid fear that world oil prices will keep marching up - after doubling in the past year to more than US$130 ($172) a barrel - Mobil chose yesterday to begin a small but ambitious biofuel trial in the lower North Island.
Although Parliament has yet to pass legislation for mandatory biofuels sales targets, the company has introduced sugarcane-derived ethanol to both 91-octane and 98-octane petrol at a service station in Johnsonville, and will add four more outlets in Wellington and the Manawatu to the trial in coming weeks.
Mobil is the first of the companies to introduce ethanol to 91-octane petrol, even if only at a 3 per cent blend, although Gull has been selling 98-octane petrol since August with 10 per cent biofuel from Fonterra's dairy factory whey.
Despite growing international concern about biofuel crops displacing food production and rainforests, the Energy Efficiency and Conservation Authority says it is satisfied Mobil's Brazilian sugarcane feedstock is grown a "sustainable" enough distance of 2000km from the Amazon rainforest.
"Even when taking shipping of the ethanol into consideration, it offers almost a 75 per cent reduction in greenhouse gas emissions over ordinary petrol," said senior authority official Elizabeth Yeaman.
But that will not offer much - if any - immediate comfort to motorists stung by the latest price rises, which have pushed 91-octane petrol to 206.9c a litre at most main-centre pumps and diesel to 179.9c.
Auckland University student Simon Scarisbrick said while filling up in Parnell that he was struggling to pay about $50 a week to keep his car on the road, and was investigating the cost of catching buses between his home, classes and a part-time job.
One woman in her 60s said she had to keep driving to work despite the punishing price rises, but was looking forward to retiring so she could sell her car and catch buses.
Mainstream petrol now costs 34.3 per cent more than 12 months ago, and diesel is 80.6 per cent more expensive, without counting road user charges not included in its price.
Ministry of Economic Development figures show the barrel price for Dubai crude oil has risen by 100.5 per cent over the same period, to US$131.84.
The more expensive United States light crude oil fell by US$4.19 yesterday to US$134.35 a barrel, but too late to prevent the hefty increase in refined fuel, which generally lags several days behind crude.
Caltex spokeswoman Sharon Buckland suggested her company had been a restraining influence on the market, despite being the first to impose price rises, a claim supported by the Automobile Association.
"We've taken 6c out of what really should have been 10c," she said.
"We lead the market on this and constrained the market - if refined product goes down tonight we'll put our prices down."
Supplies are expected to become tighter from stockpiling by China and high demand from the US as its citizens hit the highways for their summer holidays.
