Petrol Pricing
Petrol Pricing in New Zealand
With the rising price of petrol becoming a part of our daily lives in New Zealand we are lead to tighten our purse strings in order to be able to get to work, but how does this compare to previous years? This NZS.com article features a detailed petrol pricing archive with prices per quarter since 1999.
The NZS.com Petrol Pricing article contains information on the price of petrol in New Zealand in comparison with previous years and includes a petrol price archive.
Petrol prices are always a hot topic in New Zealand for everyone, not just car enthusiasts - going up, going down, taxes on top of taxes - these are some of the regular phases you're probably hearing from your office water cooler every day.
To date, the magical number that New Zealand drivers have been fearing has been $2 per litre for 91 Unleaded, but with this reality finally coming to fruition, motorists will soon be poised for the next milestones: $3, $4, $5 per litre. Price rises are eminent for all commodities, however generally we expect economies (and salaries) to rise with them.
There are several schools of thought on why the price of petrol continues to rise. There is no hard and fast reason provided by oil companies why prices to continue to rise, as each rise can often have different influences. Some of the factors in the rising price of petrol may be:
- International oil trading prices
- Government taxes
- Increased commercial profit by oil companies
- Seasonal rises in colder months
- Demand from emerging economies such as India and China
- Limited refining capacity
The list goes on. Rising petrol prices have become a daily struggle for New Zealanders, and while public transport options are increasing they still aren't a suitable option for many, meaning either the acceptance of a thinner wallet or a bid to cut down on other expenses in order to even up after fuel costs.
Environmental benefits of increase petrol prices:
Many see the price of fuel rising as a step towards a cleaner environment. Higher prices mean increased demand for alternative energy cars. It is a common belief that with high fuel prices petrol, car sales will dramatically decrease and car manufacturers will be forced to produce more electric and hybrid car options for motorists. While this may be a beneficial step for the future, most New Zealanders cannot afford to buy new cars - the benefits of going green for future money saving are overshadowed by the gross cost to invest in a new vehicle after trading in a less desirable, older one.
How petrol prices have risen - a comparison:
Petrol prices have more than doubled in the last decade, and no matter what type of car you drive, this isn't good news. It is common pub conversation that it used to cost "X dollars to fill up the old Corolla", but most people are unsure exactly how long ago this was.
If we look back as far as the early 1980s, petrol prices were below 60c per litre (following the oil price shocks of 1974 and 1979) in 1981. While this sounds low, comparatively to other basic commodities it was reasonably high, and in 2008 New Zealand dollars this would be around $2.20 per litre.
It is interesting to note that for the twenty years following, petrol prices did not considerably rise - especially when compared to inflation. Twenty years on, in December of 2001, petrol was 97c per litre, which in 1981 New Zealand dollars was only 32c, meaning the success of New Zealand's economy throughout the previous two decades had halved petrol prices by comparison.
During the 12 year period between 1987 and 1999, petrol prices remained relatively stable, with the exception of the 1990-91 Gulf War period. Prices on average only increased by 1c per litre per year during this period. Since 1999, prices have risen by 150% (to the time of writing - May 2008), and continue to rise. Fuel prices are leering closer and closer to the prices of 1981 when consumer price index inflation is taken into consideration.
Petrol prices per litre for each quarter of the last decade:
| Quarter | Diesel Price | 91 Octane Price | 96 (95/98) Octane Price |
|---|---|---|---|
| Jun-99 | $0.45 | $0.80 | $0.85 |
| Sep-99 | $0.52 | $0.87 | $0.92 |
| Dec-99 | $0.57 | $0.93 | $0.97 |
| Mar-00 | $0.61 | $0.97 | $1.02 |
| Jun-00 | $0.65 | $1.01 | $1.06 |
| Sep-00 | $0.77 | $1.15 | $1.19 |
| Dec-00 | $0.89 | $1.15 | $1.19 |
| Mar-01 | $0.70 | $1.04 | $1.09 |
| Jun-01 | $0.73 | $1.11 | $1.16 |
| Sep-01 | $0.76 | $1.07 | $1.12 |
| Dec-01 | $0.69 | $0.97 | $1.02 |
| Mar-02 | $0.59 | $0.97 | $1.02 |
| Jun-02 | $0.66 | $1.07 | $1.12 |
| Sep-02 | $0.65 | $1.04 | $1.09 |
| Dec-02 | $0.65 | $1.04 | $1.09 |
| Mar-03 | $0.71 | $1.10 | $1.16 |
| Jun-03 | $0.59 | $0.99 | $1.05 |
| Sep-03 | $0.60 | $1.06 | $1.12 |
| Dec-03 | $0.58 | $1.04 | $1.10 |
| Mar-04 | $0.64 | $1.10 | $1.15 |
| Jun-04 | $0.72 | $1.18 | $1.24 |
| Sep-04 | $0.76 | $1.19 | $1.25 |
| Dec-04 | $0.80 | $1.18 | $1.24 |
| Mar-05 | $0.79 | $1.18 | $1.24 |
| Jun-05 | $0.86 | $1.27 | $1.33 |
| Sep-05 | not available | $1.44 | $1.50 |
| Dec-05 | not available | $1.39 | $1.45 |
| Mar-06 | not available | $1.46 | $1.53 |
| Jun-06 | $1.26 | $1.68 | $1.74 |
| Sep-06 | $1.22 | $1.67 | $1.73 |
| Dec-06 | $1.00 | $1.41 | $1.47 |
| Mar-07 | $0.95 | $1.42 | $1.48 |
| Jun-07 | $0.99 | $1.54 | $1.60 |
| Sep-07 | $1.06 | $1.57 | $1.63 |
| Dec-07 | $1.19 | $1.65 | $1.71 |
|
Mar-08 |
$1.26 | $1.72 | $1.78 |
| Jun-08 | $1.61 | $1.93 | $2.00 |
| Sept-08 | $1.70 | $2.02 | $2.09 |
Petrol pricing archive is courtesy of the Consumers Price Index, Statistics New Zealand. These prices are averages during each quarter, calculated using appropriate indexes within the Consumer Price Index. They are therefore not a statistically accurate measure of petrol prices, but provide a reliable indicator for the relative movements in price levels in comparison to earlier quarters. Inflation information was calculated using the Inflation Calculator on the Reserve Bank of New Zealand website.
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Motoring images from Flickr: Petrol Station, Traffic Lights and Motorway.
