Fuel import prices drop, but don’t expect a cheaper summer
An end of year road trip in New Zealand will be more expensive despite a decrease of almost 10% in the price of importing crude oil.
The cost of importing crude oil fell 9.3% in the September quarter, compared to the previous quarter, Statistics New Zealand figures show.
However, higher prices are due to arrive with summer because there is a greater demand for fuel on the other side of the world, says AA Petrol/Watch spokesperson Mark Stockdale.
“The back end of the September quarter showed a decrease, but it is now currently going up,” Mr Stockdale says.
“Commodity prices [of fuel] tend to rise because of seasonal change so kiwis will enjoy summer, but will do so paying higher prices due to global demand.”
The Statistics NZ figures were in the producer price index which shows change in prices paid for, and received by, producers.
Compared to the last year’s September quarter, the price for importing crude oil decreased 0.7%.
This follows 10 consecutive annual increases for September quarters.
Despite evidence of the price starting to rise again, kiwis are paying almost the same price at the petrol stations as they were last year, says Mr Stockdale.
Due to the larger demand in the Northern Hemisphere, the cost of importing crude oil is beginning to rise, which will reflect higher prices at the petrol stations.
Global prices are more likely to rise than they are to fall, he says.
Import prices are what New Zealand pays before adding excise tax, which doubles the price at the fuel pump.
Summer 2011 fuel prices at the pump increased a little to about $2.12/L, which is similar to the amount this year, Mr Stockdale says.
The cheapest in Wellington is $2.08 says Pricewatch.co.nz, a business which manages and monitors fuel cards and shows daily changes of fuel prices in New Zealand.
The most expensive station to fill up in the Wellington area is at Challenge, costing $2.09, with BP charging the cheapest at $2.08.
When asked about the affects the price of imported oil, media spokesperson for Statistics New Zealand prices manager Chris Pike says pressures in the Middle East results in higher prices.
“Demand and supply, political factors and tensions in the Middle East affect crude oil prices, but if the price is cheaper it should impact at the pump,” says Mr Pike.
Other key figures in the producers price index for the September quarter was an 11.5% decrease in electricity and gas supply prices.
Cheaper exported whole and skimmed milk powders helped decrease dairy manufacturers outputs by 10% in the same quarter.
Lower farm gate milk prices led to the dairy cattle farming index decreasing by 9.4%, its third consecutive fall.