Petrol and diesel prices increase again

Bombs in Beirut are being felt at petrol bowsers across New Zealand as fuel prices climbed again today.

The four major oil companies, BP, Shell, Mobil and Caltex increased the price of petrol by six cents a litre to about $1.77 for 91-grade fuel and about $1.82 for 95-grade fuel.

The companies also increased the price of diesel by four cents a litre, to about $1.28 .

Caltex spokeswoman Sharon Buckland said the situation in Israel and Lebanon was responsible.

"We can tie it directly to the increase in the price of Dubai crude oil, which is fuelled directly by the political and military unrest in the Middle East," she said.

However, Mobil spokesman Peter Thornbury said the situation was much more complicated than that.

"It is a very competitive market. How much we put up the price depends on a lot of factors -- we depend on New Zealand currency rates to buy crude oil priced in American dollars, and the cost of production, and the cost of supply," he said.

- NZPA