According to AA PetrolWatch, the price of diesel rose eight cents to $1.08 per litre during October. A litre of 91-octane petrol rose 11 cents to $1.66 in the main centres, three cents of which was due to the increase in petrol excise on 1 October.

AA PetrolWatch Spokesperson Mark Stockdale said "motorists were hit by a double-whammy during October, with rising commodity prices and a falling exchange rate. When either the dollar goes down or import costs go up, that usually results in a price rise at the pump. With both indicators moving in the wrong direction during October, it's hardly surprising there were increases in the retail price."

AA PetrolWatch notes that crude oil prices rose 20 per cent during October, at one point breaching the US$80 a barrel barrier. This is twice as much as a barrel was costing just eight months ago, when retail prices were nearly the same but the Kiwi dollar was 51 US cents compared to over 71 US cents today.

"Our dollar has been climbing steadily for months, and in so doing protecting motorists from the rising commodity prices. However, the dollar has now fallen from a mid-October peak of 76 US cents to 72 cents and crude prices have remained high - this lead to another increase in pump prices," Mr Stockdale said.

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.