Volatile world oil costs amid uncertainty in the Middle East forced BP to raise petrol prices by four cents a litre, the company announced today, despite a strong New Zealand dollar.
BP managing director Peter Griffiths warned prices may rise further over the next few weeks with the threat of warin Iraq.
Since the middle of last month, world oil prices had added the equivalent of seven cents a litre at the pump -- the highest level since November 2000, he said in a statement.
"We have carried extra costs for as long as we can, but cannot keep doing so indefinitely."
From midnight tonight, the cost of petrol would go up by four cents a litre and diesel by three cents a litre at company-owned service stations.
BP would also lift its wholesale price by the same amount to independently owned BP stations.
This will take prices in main centres to $112.9 for Unleaded 91 and $117.9 for Unleaded Premium.
The price of diesel rises to 72.9 cents.
Mr Griffiths said BP was "making no money" at current prices.
"We have no choice but to reluctantly lift our prices."
BP would continue to monitor prices on a daily basis.
The threat of war in the region that supplies 40 per cent of world crude exports, along with a strike in Venezuela, has caused prices to rocket by 35 per cent since November.
The New Zealand dollar was worth US54.18 cents today.
While the stronger New Zealand dollar had slightly buffered consumers, delaying price increases and ensuring they were smaller than otherwise, it was not enough to cover such significant increases, said oil companies.
World oil prices surged again on Thursday as the United States signalled that diplomatic efforts to persuade Iraq to disarm were unlikely to last much longer.
