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Oil prices worsen financial difficulties

Fuel prices have hit over $ 2.50 for a 91 liter, adding to the financial hardship for many New Zealanders following the Covid-19 restrictions.

The latest figures on the Gaspy fuel pricing app show that the national average cost of 91 octane gasoline has reached $ 2.39 per liter.

Dozens of gas stations across the country have priced at $ 2.50 or more, which would be in new territory.

In the Otago area, the cheapest 91 octane gasoline available yesterday was $ 2.15 per liter at Gull Maheno, and the most expensive was $ 2.55 at Allied Glenorchy Motors.

The largest price differentials were at Oamaru (27 cents difference between high and low), Alexandra (19 cents) and Dunedin (17 cents).

Motor Trade Association (MTA) energy and environment manager Ian Baggott and AA automotive business general manager Mike Noon, the high prices were hurting many residents who did not touch their full income due to Covid-19 restrictions.

Small businesses and workers in tourism and hospitality were also affected, Noon told RNZ.

“I think it’s a really bad time.”

He said it was a problem affecting the whole world.

He seems to come out of OPEC (Organization of Petroleum Exporting Countries).

There was no offer that was supposed to come out of Opec, and of course all these countries in the world, the economic rebound coming out of Covid has been really strong.

“So there is a very high demand, not just for gasoline.”

He said China’s business sector was affected by a drop in coal supplies, leading to blackouts. There were also gas shortages.

“Usually there’s a real push on energy right now.”

Mr Baggott said the value of the New Zealand dollar also affects the price of fuel.

“We buy crude oil and refined products in US dollars.

“Our dollar against the US dollar has been volatile and is nowhere near what it was a few years ago.

“Not only does the price of the commodity go up, but the money we use to buy it is a little less valuable. “

Mr. Noon did not believe the situation would change soon.

He said there was a big variation in fuel prices in each city / region and it pays to shop around.

He also recommended joining fuel programs that offered good discounts.

– RNZ additional reports

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