24 Mar 2011

Motorists cutting their travelling - economist

7:04 am on 24 March 2011

Markets.com chief economist Bill Hubard says motorists are already responding to high oil prices by cutting their travelling - and that could affect global economic growth.

Fuel prices are at their highest level in New Zealand in nearly three years after the four main oil companies increased their prices by 3 cents earlier this week.

Fuel prices are high around the world. There's a rule of thumb among forecasters that every $10 on price of a barrel of crude, trims global growth by 0.5% in the following twelve months.

Mr Hubard, who has worked through five oil shocks, says higher prices are already affecting consumers and car owners are already starting to economise.