Petrol and diesel prices as at 25 October 2018

A welcome spate of fuel price drops in the last half of October, with four price cuts in the last fortnight, totalling 10 cents per litre (cpl) on petrol, and 7cpl for diesel. Prices have fallen primarily because of falling global commodity prices, although the NZ$ also rose about 1c. Since the last price increase in early October, the commodity price for refined petrol has fallen by about US11/barrel. Allowing for the exchange rate, this equates to about 10cpl in NZ dollars. Meanwhile, the commodity price for refined diesel has only fallen about US$5/barrel, or just 4cpl. This means with a 7cpl pump price cut the margin on diesel has fallen, and is now closer to the margin on petrol when traditionally the diesel margin is higher.

At current commodity prices, a barrel of diesel is just over US$100/barrel compared to US$87/barrel for refined petrol (and US$76/barrel for oil), reflecting higher demand and global supply constraints for diesel compared to petrol.

Petrol and diesel prices as at 25 October 2018
  National fuel price
91 Octane 238.9
95 Octane 247.9
Diesel 177.9

 

Petrol and diesel prices as at 5 October

Fuel prices continue their unrelenting rise, with petrol up 8 cents per litre in the past week and diesel 4cpl. The petrol price increase includes a 3.5cpl increase in excise (4cpl incl. GST) on 30 September. The other 4cpl increase came on Friday due to rising commodity prices and a further fall in the value of the NZ dollar – down 2c since the last price increase, and now at its lowest level in 3 years. While commodity prices have risen 4cpl since the last price rise (5cpl in the case of diesel), margins are still above average and so some of this pressure could have been absorbed by the fuel companies.

The landed cost of a litre of diesel has now surpassed $1/litre, while petrol now costs 95cpl to import, before adding domestic costs and taxes (tax on petrol alone totalling $1.07/litre). But the landed costs is still some 25cpl off the highs recorded in mid-2008 when oil prices peaked – but when taxes (and margins) were much lower and the NZ$ was worth more than today.

Petrol and diesel prices as at 5 October
  National fuel price
91 Octane 248.9
95 Octane 257.9
Diesel 184.9

 

Previous prices as at 24 September
  National fuel price
91 Octane 240.9
95 Octane 249.9
Diesel 180.9

 

 

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