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Diesel prices are soaring and expected to rise further

Diesel prices have skyrocketed in recent days – and experts warn they could rise.

The price of diesel exceeded that of 91 octane gasoline for the second time in months. On Tuesday, the average diesel price was $2.65 a liter, while the 91 was $2.56.

According to fuel price tracking app Gaspy, diesel cost $2.88 in Invercargill, $2.75 in Christchurch, $2.68 in Wellington, $2.88 in Whangarei and $2.99 ​​in Auckland.

AA’s senior policy adviser Terry Collins said the award was heavily affected by a range of factors.

“Diesel is a middle distillate; it’s similar to Jet A-1 kerosene and is very similar to fuel oil used during the Northern Hemisphere winter,” Collins said. New Zealand Heraldit’s the accent. “All of these are in high demand at the moment because globally the reserves and stocks of this stock have been very low.

“It’s been a whole combination of the Russian-Ukrainian war, tight supplies in Europe, our weakened dollar and high inflation.”

“I see it in the short term, in the next week, getting slightly worse […] Until December we know that sanctions apply to Russian oil on the water […] so it’s not a rosy picture for the last quarter of this year and the first quarter of 2023.”

Collins added that there was very little that could be done to bring the price down.

“They have already reduced the excise duty on fuel by 25 cents […] reduction in road charges and spending about $1 billion to top up the national and transportation fund to maintain and build our roads,” he said.

“And we all know what happened with the potholes and the call for the government to do more, so they can’t win anyway.”

When it came to finding the best diesel deal, Costco in Auckland’s Westgate won a landslide, at $2.42 a litre.

The American retailer opened its gas station in April and was an instant hit, with Kiwis lining up to join long before the warehouse itself had an official opening date.

But its price has also increased – Costco previously offered diesel at $2.10 a litre.

In the meantime, there are several ways to save fuel, whether by driving on gasoline or diesel.

The AA says to remove unnecessary weight from your vehicles like things in the trunk or roof racks, ride smooth and cut short trips where you can.