Petrol prices not up due to Covid-19, expert says

The head of the Motor Trade Association says petrol prices being up is not due to the Covid-19 pandemic.

With the cost at the pump increasing, Craig Pomare said it came down to "two big components".

These were demand for petrol globally and New Zealand's location. 

The cost of bringing petrol in from overseas had risen 50 per cent since January 1, he said, and last month had "cranked up" another 13 per cent.

"We wear that," Pomare said.

MTA's CEO pointed out the US exchange rate had currently stopped petrol prices going up even higher.

With OECD countries increasing their crude output, meaning more supply, Pomare said he hoped the price of petrol would come down in the next few months as that cheaper oil arrives.

He said even if the cost of crude goes down or the exchange goes up, "prices will be much the same".

Pomare said the cost of bringing petrol in was twice the margins wholesalers/retailers were on-charging.

He said they absorb a lot of the cost, with "mum and dad" stores only really earning four cents per litre.