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The petrol pain for drivers is set to worsen, with predictions petrol prices could hit the $2 per litre mark as soon as April and plans for an extra 5c on petrol tax for Aucklanders.
A significant rise in the price of crude oil in recent weeks has led financial website interest.co.nz to predict the $2 mark will be breached - much sooner than many are expecting.
And the Auckland Regional Council today proposed an additional 5c a litre regional petrol tax, which would take effect if Parliament passes the necessary legislation.
The public is now being asked for its views on the proposal with the money earmarked to pay for public transport infrastructure, primarily electrifying Auckland's rail link.
Dubai crude oil jumped 15 per cent per barrel over the five weeks to March 14, reaching US$98.25 (NZ$122) a barrel.
But prices at the pump jumped just five per cent to $1.76 per litre over the same period, interest.co.nz said.
When the full 15 per cent oil price rise is passed on at the pump, petrol prices will leap to NZ$1.93 per litre - probably soon after Easter.
But interest.co.nz says further hikes in Dubai crude oil prices will see the price of petrol climb even further.
Dubai oil was at US $96.43 today, while West Texas was at US$109.54.
The latest petrol shock comes after Mobil raised its petrol prices by 4c last Thursday, matching its competitors Caltex, Shell and BP who moved their prices a day earlier.
That move came amid warnings from BP that new government charges would push the price of petrol well past the $2 per litre mark within 18 months.
It expects carbon emission charges from the beginning of next year to add about 8.5c a litre to petrol prices.
As well, there will be 7c extra for biofuel infrastructure and operating costs, a 2c increase in July on Accident Compensation Corporation levies, a regional fuel tax of up to 10c, excise increases of 4c, and GST on all these.
Motorists are currently paying $20 more for a 50-litre fill-up than in January last year.
ARC chairman Mike Lee said that aside from rail, the levy will also be put towards new ferry terminals, wharfs and a single transferable transport ticket.
"It will be the first and only tax open for public consultation," Mr Lee said.
- NZ HERALD STAFF
