11 Mar 2010

Petrol companies raise prices

5:25 am on 11 March 2010

Some service stations are charging more than $1.80 for a litre of 91-octane petrol, for the first time in a year and a half.

Caltex and BP on Tuesday lifted prices by 5 cents a litre for petrol and 3 cents for diesel. A litre of 91 unleaded now costs $1.82.9 from those companies, while diesel is now $1.15.9 a litre.

Caltex blamed the fluctuating price of refined fuel on the Singapore market.

On Wednesday, Mobil and Shell raised the price of 91 octane by three cents to $1.80.9. Shell cited a sustained increase in the cost of fuel and a weaker exchange rate.

Gull has not yet followed suit, but says it is reviewing its prices.

In April 2008 petrol rose at a record rate from $1.80 to $2.17.8 in July of that year.

However, that was before the recession struck, and UBS Investment Bank senior economist Robin Clements doesn't think fuel prices will rise as high this time.

[audio:http://www.radionz.co.nz/audio/national/mnr/2010/03/10/petrol_rises_to_more_than_$1.80_for_first_time_in_2_years]Listen to item on Morning Report