Pump prices have remained steady virtually all month in spite of rising international oil and refined fuel prices, according to AA PetrolWatch.

Petrol and diesel prices rose five cents in early August, to $1.69 and $1.07 for a litre of 91 octane petrol and diesel respectively, where they remained all month.

The increase reflected rises in the cost of crude oil and refined fuels, with crude oil rising to a 10-month high of US$75 a barrel. Crude oil began the year at US$36 a barrel.

"While the cost of refined petrol rose eight percent since the last price rise in late July, pump prices only rose three percent, partly because of a gain in the value of the exchange rate," says AA PetrolWatch spokesperson Mark Stockdale.

The New Zealand dollar gained 3.5 cents against the US dollar during August.

"The last time crude oil and refined petrol prices were this high, in October 2008, we were paying $1.90 at the pump for petrol. Retail prices are substantially less today because the high kiwi dollar is keeping those international costs in check."

According to AA PetrolWatch, one reason international fuel prices have been increasing is because commodity speculators are anticipating an economic recovery and increased oil demand.

For more information, go to: www.aa.co.nz/aapetrolwatch

For more information contact

Mark Stockdale
AA PetrolWatch Spokesperson
New Zealand Automobile Association
T. +64 4 931 9986
M. +64 21 0220 4700
E. mstockdale@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.