Wooly_Cow

Over the past few months there has been much debate here and on other forums about the falling value of the British Pound and the rising value of the Kiwi Dollar.

A side note to this debate is that with a stronger currency imported goods prices should be cheaper in New Zealand....but guess what no-one has seen this. In particular oil and hence petrol should be cheaper but wasn't...

Now I read it the Dom Post that Shell and BP are going to PUT UP the price of petrol by 5 cents because of 'a fall in the value of the NZ Dollar'

...another case of quick to put up the price, slow to reduce it.

Given the weakness of the pound, did petrol prices in the UK go up over recent months?

Genesis

Fat cats fleecing little mice springs to mind.

Madmaxdeux

It may have escaped your notice but while the NZ Dollar was gaining on the US Dollar the price of Oil was going up as well. That cancels out any rises and its only when you get a correction of the dollar that you notice this rise or fall. like everyone likes to point out every penny in the UK is about (average) 2.5 cents here so you notice the swing more.

So it was my imagination then that I paid $1.68 today where as 14 months ago I was paying $2.28? I think the price went down

still its cheaper than in th UK and Europe

Wooly_Cow

True so therefore petrol prices in England must have gone through the roof or ?????

Yotty

Petrol and Diesel in the UK are around £1-05 to £1-08.. Lowest price has been around £0-90 a few months back ..

Madmaxdeux

Did you not read what I said that 2.5 cents per rise is around a penny in the UK?

If Oil stays around the $80 mark which is where it should be apparently and the US$ goes back to what it should be at $0.55c. Then your price would be around nz$1.80-nz$1.90.

Every us$1 Oil goes up or down a cent goes up or down on the pump price

Every cent the Kiwi moves on the Greenback gaining takes a cent of the pump price and every drop puts a cent on the pump price.

Keep an eye on the price you will notice that pattern but also beaware that the refined product cost cuases a delay in coming down.

Dont forget those ACC levies and other taxes sneeked into the price over the last 12 months when you do your maths

chocolate cake

It's only cheaper than UK & Europe as it's undertaxed (comparatively) in NZ.

Certainly with movements in the NZ$ or US$ price of oil, the favourable movements are very much slower to be reflected at the pump than than the unfavourable ones which seem to happen much more immediately.

14 months ago or whatever oil was well north of $100/barrel and figures of $200/barrel were bandied about.

concretepump

no its not undertaxed in newzealand , its overtaxed in uk

Madmaxdeux

Depends who you speak to in New Zealand After paying UK prices when you get here you got that reassurance that you are paying less in New Zealand than in the UK.

While it was on the climb last year I took comfort in the knowledge we had been there before! When we left the UK it was 80p which worked out at the tiime to $2 per litre. It was only when it went over $2 I no longer felt that comfort.

When ever we go anywhere we work out the estimated kilometres divide it by our fuel consumption per km (10 being a nice round figure) to give us our litres then muliply that by 2.

(Kilometres / 10)x2=the Cost

Over estimates are good and so is/was the lower prices.

Last year there was that $200 barrel price thrown around but the year before some one else was predicticing that if it reach $150 it would collapse in price as the worlds economy falterd because of the high price...and it did.

Have a read of this website gives some ideas on what is happening

http://www.oil-price.net/

So lets say the Kiwi goes to 0.55 aganst the greenback and Oil reaches $200 what would the price be? Going by the $1 and cent shift pattern (without goverment levies) thats prety close to the $3 litre.

So time to plan for that maybe???? But in the UK you will be paying a bit more.

lardyl

http://www.med.govt.nz/templates/Page____39574.aspx
tax on fuel by OECD country - of course the UK is over-taxed......yeah right!

http://www.med.govt.nz/templates/Page____39570.aspx
shows how the costs are made up.......literally you might say!!

Didn't someone on here suggest that if it stays over $150/200 a barrel then the NZ economy as we know it will no longer be sustainable, as people on low wages will be hit and unable to travel, business transport costs will spiral and generally the low-cost/low-wage model we live by will fall to bits.

I'd venture that to be possible due to the dire state of the railways and public transport here, but maybe the change will be not as bad as was postulated.......

Madmaxdeux

I said

Of course if that was someone else then they probably were one of the doom sayers who were predicting $5 by Christmas last year

Yotty

I recon high energy cost will be with us to stay .. it might be different if India and China weren't rapidly developing.. within a few decades there will be wars over water food and oil .. as well as religion .. (oops it appears I have joined ranks with the doomsayers!)