AA Motoring Affairs General Manager Mike Noon says "motorists continue to be subject to rising prices as a result of increases in the international fuel costs, with crude breaking through the US$90 per barrel barrier during the month. Fortunately prices rose only once during November, although for diesel consumers that meant an 8 cents jump in one go."

According to AA PetrolWatch, crude prices have risen 19 per cent in the last two months, with international refined diesel and petrol up between 20 and 22 per cent. However pump prices only rose 9 per cent for petrol and 11 per cent for diesel in real terms.

"This time last year, motorists were paying $1.43 per litre for 91 octane and 99 cents per litre for diesel. A year ago crude oil was under US$65 a barrel versus nearly US$95 at the end of November. That represents a 46 percent increase."

"There are signs that international prices are beginning to decline, resulting in a 3 cent drop in pump prices in early December. Hopefully this trend will continue as we approach the Christmas and summer holiday driving season," says Mr Noon.

Emissions Trading Scheme

The AA is warning motorists to now expect significant rises in fuel costs because of the Government's Emissions Trading Scheme.

"If Parliament passes the Climate Change (Emissions Trading and Renewable Preference) Bill, petrol is forecast to rise about 12.2 cents per litre, and diesel to rise by about 13.3 cents per litre. This is based on carbon prices of $50 per tonne," says Mr Noon.

"The AA is alarmed by the new fuel price forecasts. The Government has previously said prices would rise by just 4 cents per litre."

"While motorists are more than willing to pay for their share of emissions, it is important to remember that private cars only contribute 8 per cent of New Zealand's total greenhouse gases."

"We can't help but feel that private motorists are being unfairly targeted ahead of the energy and agriculture sectors, that contribute most of the greenhouse gases," says Mr Noon.

For tips on how to save fuel, go to www.aa.co.nz or www.fuelsaver.govt.nz.

For more information contact

Mike Noon
General Manager - Motoring Affairs
New Zealand Automobile Association
T. +64 4 931 9984
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.