Petrol prices in New Zealand are expected to rise to $3.50 a liter for 91 octane petrol for the Christmas season. The rise in prices was attributed to a combination of factors including rising global oil prices and the weakness of the New Zealand dollar. Ahead of the US Federal Reserve’s interest rate announcement, the New Zealand dollar stood at 59.2 US cents, adding pressure to petrol prices.
The closure of the Marston refinery has also had an impact on fuel prices. Crude oil prices hit $95 a barrel, the highest price of the year. As a result, premium gasoline has already exceeded $3.50 in some areas, and the average price of 91 octane gasoline is reaching $3.12.
Terry Collins, the AA’s chief auto policy adviser, predicted prices would be $3.20 in two weeks and $3.50 by Christmas. Global supply shortages are expected to persist into the final quarter of the year. Major oil producers such as Saudi Arabia and Russia have extended production cuts, and other members of the OPEC+ group are also cutting output.
In addition, rising refining costs and limited global capacity will affect jet fuel production, which will increase aviation costs. It is noteworthy that the temporary reduction in petrol taxes implemented by the government which reduced the price by 25 cents per liter has come to an end. As a result, full public transport fares and fuel taxes have been reinstated from July 1.
– Octane: A unit of measurement that measures a fuel’s ability to resist knocking or pinging during fueling.
– Brent Crude Oil: A benchmark oil used to determine international prices.
– OPEC+: Organization of the Petroleum Exporting Countries (OPEC) and a group of other non-OPEC oil producing countries.
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