Here’s what gasoline prices might look like in the coming months.
Fuel prices at gas stations have become cheaper over the past three months, but the tide is turning and could rise by up to 40 cents per liter in the coming months, AA warns.
Over the past 90 days, the average price of regular 91-octane gasoline and diesel has fallen in three major cities, according to Gaspy data.
Nationally, the average price of 91 is 18c per liter, 95 octane is 14c, and diesel has fallen nearly 44c after overtaking petrol for the first time late last year due to supply problems.
Auckland drivers paid $91 per liter on average at the end of October at $2.70, but that dropped to $2.54 at the end of the year.
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The price of Wellington 91 has dropped from $2.54 to $2.43 in three months, and from $2.58 to $2.38 in Christchurch.
In Auckland, transit prices fell from $2.78 to $2.42, Wellington from $2.61 to $2.27, and Christchurch from $2.67 to $2.27.
On Saturday, the average price for a 91 was $2.52, a 95 was $2.70, and a diesel was $2.30. Prices remained stable on Saturday as well.
RNZ: Gasoline Prices: Expect an ‘inevitable spike’ at gas stations when the tax cut ends. Video was published in July 2022.
Treasury Secretary Grant Robertson said last week that the government will focus on helping New Zealanders cope with cost-of-living pressures in a challenging global environment with annual inflation unchanged.
“The cost of living cannot be fixed overnight. We are taking various measures to ease the burden on families.”
“We are also addressing the underlying causes of high prices. We are taking action at gas stations and supermarket checkouts to improve competition and ensure Kiwis pay a fair price.”
But with the government ending its 36 per cent road user rate discount on Jan. 31, and ending the 12.5ca liter petrol excise tax cut on Feb. 28 and Mar. 31, AA senior policy adviser Terry Collins said fuel prices could rise by April. Expected to rise to 40c. .
Brent crude prices were about the same as at this time last year, sitting around NZ$135 a barrel on Friday, but Collins said the market is still unpredictable.
During the holidays, we experienced the lowest prices in at least a year, but once the fuel excise tax cut ends, gasoline prices will be similar to what they were at this time last year, he said.
“It will be a little difficult as the government gradually reintroduces these two fuel excise taxes.
“I think it will be a time when crude oil prices rise.”
He expects gas to cost 25 cents a liter more through at least March.
“At the end of March, it could be around 40c per liter more than we saw. And that’s going to be a combination of rising oil prices.