8 Oct 2018

What dictates what you pay at the pump?

From Afternoons with Jesse Mulligan, 1:13 pm on 8 October 2018

The price of petrol has jumped up to around $2.40 per litre - nearly 40 cents more expensive than at this time last year.

But when people talk about what caused this ride, things quickly get complicated and filled with jargon like Brent crude prices, government tariffs, and oil company margins.

Independent economist Cameron Bagrie joins us to explain exactly how the price of petrol is calculated, and what's happened in the world recently that's led to these recent increases.

Fuel pump.

Fuel pump. Photo: RNZ / Alexander Robertson

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