Friday, 19 March 2010 05:29 am

$20 million more pumped into fuel

Feb 3rd, 2010 | By Penelope Scott | Category: Front Page Layout, Latest News, News, Uncategorized
petrol guy

PAIN AT THE PUMP: Jolyon Riddiford is one who's paying more.

CONSUMERS put their hands in their pockets for an additional $20 million worth of petrol in November, the fifth consecutive month of higher spending on fuel.

Statistics New Zealand recently released figures showing that from October to November 2009, petrol sales were the largest contributor to a 0.8% boost in total retail sales.

After a turning point in July, fuel sales have been rising consistently, and by November were up 2.3%. 

In the same month, motor vehicle sales fell 3.2%, or $17 million, the largest recorded fall since January 2009.

caryard-smaller

SALES CRASH: Falls in the number of cars sold.

From a peak in car sales in May 2007, the November numbers were down by a quarter.

Mark Stockdale, senior policy analyst at the New Zealand Automobile Association, says the increase in petrol purchases could be a result of summer, with people travelling more, and a general improvement in the economy.

“An improving economy means more commerce – so that could have increased diesel sales in that period for freight.”

In a statement, government statistician Geoff Bascand says: “The total retail sales trend has been rising since February 2009 (up 2.5%), at an average rate of 0.3% per month.”

Mr Stockdale says petrol and diesel sales could follow suit.

“[The] general economic upturn suggests we could expect to see modest rises in fuel volumes. However, that will be tempered somewhat by expected increases in global commodity prices, which are recovering after worldwide demand fell during the economic crisis.

“The other major factor will be the NZ dollar, which is currently quite high, but if this falls this will have a negative impact on demand as the cost of imported fuel rises.”

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Penelope Scott is a Whitireia journalism student.
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