"While the New Zealand exchange rate rose three cents against the United States dollar in June, unfortunately both crude and refined product prices also increased and partially offset the currency gains," says AA Motoring Policy Analyst Mark Stockdale.

The ACC levy component of petrol tax also rose by 1.5 cents per litre on 1 July 2007.

"Oil company margins have recovered and were higher than average during the month of June. As a result the AA believes the ACC levy increase can be absorbed by the oil companies. It should not be passed on to motorists and the AA looks forward to continued pricing competition in coming months," says Mr Stockdale.

Stable prices make it easier to budget for fuel costs, and the AA reminds motorists to visit www.aa.co.nz or www.fuelsaver.govt.nz for tips on how to save fuel.

Compared to this time last year, petrol prices were $1.71 per litre for 91 octane and $1.24 per litre for diesel, according to AA Petrolwatch

For more information contact

Mark Stockdale
Motoring Policy Analyst
New Zealand Automobile Association
T. +64 4 931 9986
F. +64 4 931 9960
M. +64 21 285 9105
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.