How to save at the pump as petrol prices soar

Source: 1News

Soaring petrol prices are leading to some motorists taking their anger out on petrol station staff, with a litre of 95 exceeding $3 in some areas.

According to Statistics New Zealand, petrol prices saw a sharp 30 per cent increase in the year to December 2021 quarter, with the average cost of 1 litre of 91 octane petrol rising to $2.45 compared with $1.87 per litre in the December 2020 quarter.

However, what some people may not realise is that the bulk of the cost is tax, making up 52 per cent of the price. A further 37 per cent is production and shipping costs, leaving the remaining 11 per cent to retail.

The retail cost goes towards the running of petrol stations, such as paying staff and the cost of rent.

The price you pay to fuel up depends on where you live, with the average price at the bottom of the country at $2.59. while the capital is hitting an average of $2.66.

Northland is at $2.63, while Auckland is seeing the highest average at $2.72.

The Automobile Association says the spike in prices is due to the cost of getting fuel to New Zealand.

“The price of oil has gone up 15 per cent and that’s around the tensions that exist with the Ukraine border,” the AA’s Terry Collins told Breakfast.

Read more: National wants Auckland regional fuel tax scrapped

“Russia, the third largest supplier of oil in the world, has created tension, this has created uncertainty and has driven the price of oil up.”

There is also the uncertainty brought on by the supply and demand caused by the Covid-19 pandemic.

“As a consequence, the producers have not been prepared to put on extra production at a time when we’re coming out of the lockdowns and demand is increasing," Collins said.

“We’re yet to pay for the increase of the oil prices so I imagine it will be going up in the short term, in the next month or so.”

So how do we save at the pump?

The AA recommends shopping around for the best price. By travelling that short extra distance, you could save by up to 30 cents a litre.

Collins also advised people not to take small trips.

“A car works best when it’s warm and at operating temperature. If you have a small 1 kilometre run, the motor never gets up to operating temperature.”