Fuel prices in many parts of the country rose a total of 2 cents per litre during May, but in other areas the price rise was significantly higher as the long-running price discount war came to an abrupt end.
The price of 91 octane petrol at most outlets began the month at $2.03 per litre - the first time it had been over $2 since early December - and rose to $2.10 before falling to $2.05 by the end of the month.
Petrol is now over $2 a litre in most parts of the country. Photo: File.
Diesel prices in many of the main centres initially rose 7 cents to $1.36 per litre, before dropping to $1.31.
However, in parts of the Bay of Plenty, Auckland, Whangarei, Waikato, Hastings, Manawatu, Wanganui, Levin and Masterton - where there had previously been heavy discounts - prices at many service stations suddenly rose from below $1.90 a litre to over $2.
AA PetrolWatch spokesperson Mark Stockdale says: 'Many lucky motorists had not seen petrol prices over $2 a litre for over a year thanks to intense local price competition.
'It was sometimes more than 30 cents below the price being charged in much of the South Island and lower North Island.
'The price war came to an end during May, with Gull being the first to substantially raise prices, although in a few locations there is still some heavy discounting with the price of 91 petrol below $1.90 a litre.
'As ever, the AA advises motorists to keep a close eye on price boards and shop around for the lowest price.”
Mark says although fuel prices ultimately rose just two cents per litre during May for many motorists, the AA's monitoring shows commodity prices rose around eight cents a litre, including a drop in the exchange rate.
'The reason pump prices haven't matched the increase in commodity price increase appears to be because during the price war, fuel companies had been cross-subsidising their discounts in certain locations with higher prices elsewhere,” he adds.



7 comments
Go to Gull!
Posted on 04-06-2015 13:57 | By cptn scully
Well people if you want to save Go to Gull On the Hewlett's Road site still only $1.89
Fuel prices
Posted on 04-06-2015 14:10 | By Willem
I'm surprised that the AA doesn't take a stronger stance against these high prises. Crude oil is still very low, and certainly only about half of what it used to be about a year or two ago. You can't tell me that the processing costs have gone up so much as to keep petrol prises at the $2 level. Some proper info on the reason for these high prises would be nice. After all, the AA should support consumers, not roll over and accept the suppliers reasons without questioning. I get the feeling that we should just accept.
Very Timely
Posted on 04-06-2015 17:47 | By Towball
announcement of fuel prices increasing at the same time Z announce a major take over of Caltex & Mobil , then equally seduce motorists into thinking that there is no monopoly or price fixing .There is a Mobil and Caltex 200mtrs up the road on Otumoetai Rd so two Z stations makes sense, then the same on Cameron rd. How does this benefit the motorist ? Totally agree with Willem .
petrol
Posted on 04-06-2015 19:19 | By dumbkof2
You think petrol is dear now. Just wait till Z takes over all the caltex stations then watch it rocket up. BP will be next then Mobil.
A Bloody Rort
Posted on 04-06-2015 20:08 | By ROCCO
What price wars they do what they please when they please and how they please. LOL
jmac
Posted on 04-06-2015 21:14 | By JohnMac
AA have no control of petrol prices at all. As the dollar goes down in value imported goods go up in price sad to say. This has as much influence on what we pay as the base price per barrel of oil. Buy a smaller engine car and use it less is the only way to cut what you spend on petrol. Also slower driving especially avoiding fast take offs and heavy loading. It only going to be more expensive for the car owner until the developers come up with a cheaper option for powering a vehicle.
200L
Posted on 04-06-2015 21:34 | By Capt_Kaveman
oil is about $0.42c/L =($1.68-$1.83)so gull is close to the norm but still higher than it should be ($1.89.9)
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