Petrol price reaches two-year high

The Automobile Association says petrol companies are unjustified in claiming Egypt’s political turmoil is a factor in price rises.

Petrol prices for most major oil companies have passed the $2 threshold for the first time in more than two years.

The Automobile Association says the last time 91 octane cost $2 at the pump was in late September 2008.

Caltex and Shell lifted their prices three cents from $1.99.9 to $2.02.9 per liter.
BP spokesperson Neil Green says his company was forced to increase its price for 91 octane to the same level.

He says the increase is mainly driven by the fall in the New Zealand dollar and continued unease about the security of supply due to unrest in Egypt.

Egypt does not produce oil but there is fear the unrest there will spread to other countries in the region that do.

Mr. Green says the dollar will have to stabilize if there is to be a difference at the pump.
But AA spokesperson Mark Stockdale says the situation in Egypt is not threatening the supply of oil and believes prices will drop once the “panic” there subsides.

However, he says increased demand as the world comes out of the recession will push prices up again.

Meanwhile, the price at Gull continues to sit below the $2 mark at $1.98.9 per liter for 91-octane petrol.


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