Small fuel price rise won't achieve ETS aims - AA

The small rise in fuel prices due to the introduction of the Emissions Trading Scheme (ETS) will not be enough to curb motorists' fuel use, the AA says.

Fuel prices were steady for most of June, apart from a small rise at the end of the month, as the strong New Zealand dollar offset rising international crude oil prices, AA said in its monthly report.

However, petrol and diesel prices have already risen this month following the introduction of the ETS yesterday.

Petrol and diesel rose 3c per litre at most outlets, except Gull, as companies passed on higher prices under the ETS, which the Government introduced to help curb greenhouse gas emissions.

The average motorist, driving 14,000km a year, would pay an extra $40 in annual fuel costs due to the ETS, the AA estimated.

"Fuel prices fluctuate all the time and motorists are used to this and won't necessarily reduce their fuel consumption or adjust driving practices on the basis of a moderate price change which can be offset by supermarket vouchers," AA PetrolWatch spokesperson Mark Stockdale said.

Further fuel price rises are on the cards, with a rise in GST and petrol excise in October likely to add a total of 7c per litre to petrol and 6c per litre to diesel.

"The total price of petrol, including 76c per litre in taxes which will be rising late this year, does influence drivers but it's difficult to see how an additional 3c charge for the ETS will make any difference," Mr Stockdale said.

- NZPA