TOP STORY: Petrol pumps up blood pressure

LAWRENCE GULLERY
MOTORISTS are feeling the pinch on increasing fuel prices as major oil companies lifted the price of crude oil last night by 5c a litre.
The rises are in response to the continuing world oil squeeze, which has sent crude oil prices soaring. The price of 91-octane petrol went up to 173.9c a litre and diesel to 127.9c.
Petrol is still 3c a litre cheaper than the record of 176.9c set in August last year, but diesel has never been more expensive, equalling peaks reached on two occasions last year.
The price is predicted to pass $2 a litre with the addition of regional fuels taxes in July to fund public transport and roading projects, and a 2c increase to the ACC levy. In Hawke's Bay, motorists such as Craig Murphy were feeling grumpy at having to pay more.
"I'm pretty gutted about it," he said. "I own a business and we do plenty of kilometres each day."
Mr Murphy said he would have to review what affect the petrol hike would have on his flooring, carpet and vinyl business, Diamond Flooring.
At the moment the Hastings-based business was absorbing costs but if increases continued, they would be passed on. "Someone's going to have to pay for it," Mr Murphy said. "Sometimes we have to drive to Taupo, Wairoa or Waimarama. On any day we could use a whole tank of petrol."
He said he ran one petrol and one diesel van but could not see the benefit in transferring all vehicles to diesel.
"Diesels will go further on a tank but you have to pay road users (tax)."
Mr Murphy said it was also becoming expensive to fill up his fishing boat.
"It used to cost about $270, now that's gone up to $340." Meanwhile in the vehicle-hire business, customers are thinking twice about the economy of the car before they rent.
Napier's Metro Vehicle Rentals manager, Grant Miller, said people organising family events were "pooling" their efforts by hiring diesel mini vans rather than separate cars.
Some were even hiring diesel cars for short holidays rather than use "their big V8s".
"It's cheaper for them to hire a diesel than to use their own car," Mr Miller said.
Increasing petrol price had not meant a downturn in business but people were just becoming more selected about the economy of the car those selected to use, he said.
"I would say about 80 per cent of our customers are using smaller cars, we offer them to upgrade but they're not that fussed, that would rather use the smaller car," he said. Also in Napier, business was going well for Auto Rental Vehicles, which has a fleet of 24 cars.
Owner Michael Helliwell said customers were going for the economical vehicles or asking if cars were petrol or diesel. "People do inquire about the bigger cars but it's mostly business people, probably because their company is paying for it," he said.