Crude oil pumps up fuel prices

In the June 2018 quarter, higher prices for imported crude oil increased the costs paid by the petroleum and coal product manufacturing industry by 11.3 per cent, according to Stats NZ’s latest figures. 

The higher cost of buying crude oil was passed on to petroleum products. 

The petroleum and coal product manufacturing industry received higher prices (up 10.9 per cent) for petrol, diesel, other petroleum products.

Petrol bought by businesses was up 5.5 per cent while diesel was up 9.8 per cent. 

These higher costs for fuel flowed to other industries. For example, input prices for the road transport industry rose 2.0 per cent in the June 2018 quarter, mainly due to higher petrol and diesel prices.

“Oil is a significant source of energy for New Zealand,” said Stats NZ. 

“Changes in the price of oil affect the overall prices paid by households and businesses.

“In New Zealand, fuel prices are affected by the prices of imported crude oil and domestic oil production, and the exchange rate.”