By CHRIS DANIELS
Petrol prices are jumping again, with oil companies deciding today not whether, but how quickly, they will match Mobil's increase of 2c a litre.
Mobil announced it would lead the latest round of rises last night when it added 2c to its petrol and diesel prices.
Company spokeswoman Rowan Macrae said the price of crude oil showed no sign of softening and the weak New Zealand dollar was making it even more expensive.
Since the last price rise in early February product costs had gone up by "at least a further 3c a litre equivalent," she said.
Last night's jump, expected to be matched by the three other main oil companies, will take urban petrol prices to about 99.9c a litre for unleaded 91 and $1.04 for premium unleaded.
One company, however, believes prices may be on the way down again soon because crude costs are expected to ease.
Caltex's general manager for sales, Bruce Hollett, said matching price rises were inevitable but he expected them to fall again.
"I would say probably by mid to late March we will be seeing some definite softening in the price of crude. I hope that we are only looking at a maximum of another month of high crude costs.
"We had a very close look last week, with the crude prices going up. They did come back for a couple of days, but now they have gone up substantially.
"Particularly given that it is now at a higher level than when we thought it was time to move last week, it is inevitable."
He said the only surprise was that Mobil had increased its prices by 2c a litre when a 3c increase was justified.
Shell spokesman Antonius Papaspiropoulos said the case for a new price rise was well justified and it seemed inevitable that Shell would fall in behind.
The weak New Zealand dollar was not helping. Prices of finished product from Singapore had also just increased, as United States motorists began driving more as the weather improved.
Shell would probably announce a price change today.
"Don't hold your breath - it won't be too long," Mr Papaspiropoulos said.
BP's Jane Diver said officials at the company would consider increasing prices today.
The 11 members of the international oil cartel Opec are coming under pressure from the world community over restrictions on their output, which leads to higher world crude prices.
United States Energy Secretary Bill Richardson said high prices posed a risk to world economic growth.
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