Petrol prices nudge a $1.30 record

Petrol prices have bounded to a record high, lurking just under $1.30 for each litre of standard-grade fuel.

All the oil companies had by yesterday lifted both petrol and diesel prices 4c a litre, pushing the cost of 91-octane in Auckland to 129.9c and of the lesser-used 96-octane to 134.9c at most pumps.

Caltex, in line with its policy of maintaining a 6c differential between the grades, is the exception in selling 96-octane at 135.9c.

These prices are 0.4c higher than the previous nominal record set in April, immediately after the Government lifted its petrol tax 5.6c to pay for new roads and public transport infrastructure.

Diesel now sells for 89.9c in Auckland, but is 3c cheaper than a record set late in 2003.

Motorists gained a respite last month when petrol prices dropped almost 11c during jostling by the oil companies for bigger market shares.

But prices have marched back in three rises in little more than a fortnight, as world oil prices have made the competition difficult to sustain. US petrol consumption is averaging 3 per cent higher than at the same time last year.

A deal by oil-supplying nations to lift production quotas is not expected to lower crude oil prices below US$50 a barrel.

The main oil companies had little comment yesterday but minor supplier Gull Petroleum said margins had been tight for the past two months.

Automobile Association motoring policy manager Jayne Gale feared prices could go even higher.