Kiwi drivers feel the pinch as petrol hits record high, and could reach $3 a litre

May 22, 2018

Last week 91 octane petrol rose seven cents to just under $2.30 in Wellington and the South Island.

A Wellington florist is the human face of historically high petrol prices hitting motorists in the capital and South Island and says there's no way she can incur predicted prices of $3 a litre.

Last week, 91 octane petrol rose seven cents to just under $2.30 in Wellington and the South Island, beating the previous record high in 2013, and the record could be broken again.

"I hate to be a merchant of doom but it's not inconceivable that it could go to sort of $3 a litre," said Ken Shirley, Road Transport Forum NZ chief executive. He says prices could reach that level in six to 12 months.

Florist Karen Pearce is already feeling the pinch, the cost of trips to the market and deliveries adding up.

"Every time I fill up each week I notice it's getting more and more," Ms Pearce told 1 NEWS in her Juliette Florist shop.

And predictions petrol prices could go up further are a scary prospect.

"There's no way that I can incur that. I am a very small business. I pay quite high rent to be in the city, so any small increase is definitely noticed. So a big increase like that could definitely affect us," she said.

Global fuel prices have been increasing due to international instability, particularly in Iran. And petrol stations here say a weak New Zealand dollar has added to the problem for motorists.

"It's really difficult to find the money to be able to travel," one woman in Wellington said.

Another said: "People who have got less money haven't got enough money sometimes for petrol when they need it."

Ken Shirely says the depreciating NZ dollar is responsible for the high price of petrol at the moment.

While a man in the city said: "It's plainly so ridiculously expensive in general to think that it's just risen so much."

The Government is currently bringing in legislation which would give it more power to investigate petrol prices.

Energy and Resoruces Minister Megan Woods says she's discussing with officials "whether there is anything that we can do in the interim".

"Unfortunately most of the solutions do actually require us to have the information that we'll get through the market studies powers," she added.

The new high price means more than $1 per litre is being returned in tax and the Automobile Association says the Government could reduce its take.

"They could get rid of the GST that they collect on top of the petrol excise. That is a tax on top of a tax," said Mark Stockdale of AA Petrol Watch.

Any help will be welcome for those struggling with fuel's spiralling costs, including Aucklanders who face a fuel tax in July.

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