Our blog features motoring news, tips and expert advice bought to you by the AA Motoring team.
While the price of oil rose US$10/barrel during April, petrol prices remained unchanged while diesel prices fell 6 cents per litre thanks to the rising NZ exchange rate and, in the case of diesel, falling commodity prices.
Crude oil prices rose nearly US$10 a barrel during the month due to the global economic recovery and speculation that the harsher Northern Hemisphere winter would increase demand for heating fuel.
A small price rise in January but it took the price of 91 octane petrol up to the magic $2/litre mark. The increase reflects rising oil prices which reached US$100 a barrel, although the impact on the pump price was slightly offset by a stronger NZ$. The price we're paying now is the same as it was when commodity prices were last this high - in September 2008.
As fuel prices increase you may think it would make perfect sense to automatically consider downsizing to a more fuel efficient vehicle. Surely, if you could reduce your fuel bill overnight why wouldn’t you start looking at selling and trading up to a much more miserly and thrifty vehicle which is going to save you dollars at the pump.
More and more hybrid models are entering the new car market. This means the number of used petrol/electric vehicles will continue to increase and start to become an attractive alternative to those simply looking for a fuel efficient and affordable means of transport.