Petrol prices bite as government holds firm

Unleaded 98 has risen 5.5 percent to just over $3 on average. Photo: RNZ / Dan Cook.

Motorists can expect more pain at the pump as petrol prices once again start to trend upwards.

Price tracking website Gaspy reports the average price for unleaded 91 has gone up by 4.7 per cent in the last 28 days to $2.78. Unleaded 98 was up 5.5 per cent to just over $3, and diesel up 8.6 percent to $2.07.

This followed the government's fuel subsidy coming to an end in June as well as a volatile global fuel market.

Auckland resident Akshaye says he noticed the difference when he filled up these days.

"I think it's really high, you know, and with the government subsidy going away I think it is making a lot of people face hardship, with the rise of interest rates and everything, definitely adds up on the monthly expenditures."

He wants the government to reintroduce the fuel subsidy.

"At least until interest rates come down a bit, just help out the people a bit you know, I think everybody is finding it really tough.

''At least for us we have company cars so we don't feel the pinch as much, but a lot of other people, they do."

But Prime Minister Chris Hipkins says reintroducing the fuel subsidy is not on the table right now.

''I've indicated yesterday morning that we are not intending to reintroduce that."

National has other ideas on how to provide financial relief to New Zealanders. Leader Christopher Luxon says if elected, his party will give people income tax relief to help with costs like fuel.

''That's why we say inflation adjusting tax thresholds are so important, because it means that New Zealanders get to keep their own money in their own pocket.

''It's not just petrol prices that are going through the roof at the moment, it's all so been rents, it's also been food, it's also been mortgage rates and so we want to be able to let New Zealanders keep more of the money they earn."

Luxon believes government spending is to blame for rising costs.

''We have a major challenge in this country where this government spending has actually created domestic inflation - it's not international inflation, it's domestic inflation, that's our problem.

National leader Christopher Luxon. Photo: RNZ / Samuel Rillstone.

"That's caused high interest rates and that's caused a recession and so, that challenge is to deal with the underlying causes of inflation again."

Automobile Association principal advisor Terry Collins says the price rise is also due to Saudi Arabia cutting oil production.

"In the last month we've gone up from having around about the mid-70s for a barrel of oil, sometimes as low as $72, now we are seeing it about $86.

''That 10 cents a barrel increase over the last month has added about 10 cents to a litre of fuel."

Collins expects the upward trend to continue in the medium-term.

''What I am assuming to see is prices going up, slowly. I think they are looking at stabilising the barrel around $90 a barrel... they are doing that by production cuts."

Gaspy data showed Gull petrol stations in Hampton Downs and Te Awamutu had the cheapest 91 in the country, sitting at $2.48 a litre.

-Delphine Herbert/RNZ.

2 comments

Don't Worry -

Posted on 09-08-2023 20:15 | By The Caveman

About 10 days before the election date CHIPPY will announce a 25 cent drop in petrol tax as a LABOUR election BRIBE !!!


Thank heavens

Posted on 10-08-2023 10:49 | By Angels

The subsidy had to be paid in a different way to replace the loss of taxation.
This helped big business not the ordinary person.
False picture from the government. We the people were helping big business .


Leave a Comment


You must be logged in to make a comment.