Prices for 91 octane started the month at $1.54/litre in the main centres, with diesel retailing for $1.03. By mid-August, all fuels rose by 3 cents per litre, ending the month on $1.57 and $1.06 respectively.

"The price rise was wholly attributable to the falling NZ dollar, and could have been greater if it were not for falling international crude and refined product prices throughout most of the month. This helped cushion the blow for motorists from the declining exchange rate," said AA General Manager of Motoring Affairs, Mike Noon.

"This combined effect meant oil companies were able to keep retail prices largely in check, although we note that refined product prices were rising towards the end of August, and this flowed through to motorists with a further increase of 3 cents per litre (4c/l for diesel) on 4 September," Mr Noon said.

Overall, international crude prices fell by 9.6% during the course of the month, with diesel falling and rising during the month, ultimately dropping just 1% by month end. Refined petrol prices fell as much as 10% during August, but after a late rally, ended the month 3.9% down compared to the end of July.

Twelve months ago, motorists were paying $1.62/litre for 91 octane, and $1.22/litre for diesel, when the exchange rate was around 65 US cents.

The AA reminds motorists to visit www.aa.co.nz or www.fuelsaver.govt.nz for tips on how to save fuel.

For more information contact

Mike Noon
General Manager - Motoring Affairs
New Zealand Automobile Association
T. +64 4 931 9984
F. +64 4 931 9964
M. +64 21 659 704
E. mnoon@aa.co.nz

The New Zealand Automobile Association is an incorporated society with over one million members. It represents the interests of road users who collectively pay over $2 billion in taxes each year through fuels excise, road user charges and GST.