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Home / New Zealand

Dollar, crisis may keep fuel prices up

By Mathew Dearnaley
NZ Herald·
10 Aug, 2008 05:00 PMQuick Read

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KEY POINTS:

Drivers may miss out on early cuts to fuel prices because of a weakened New Zealand dollar and the military crisis between Russia and Georgia, on the route of a big oil pipeline from the Caspian Sea.

West Texas crude oil dropped by a further US$3 a barrel on Friday, to US$115 ($163), intensifying hope already building of cheaper fuel at local pumps.

But that was before Russia's bombing blitz against neighbouring Georgia, where Moscow said 1500 people, mainly civilians, were killed in the disputed South Ossetia province over the weekend.

The Georgian Government said on Saturday that Russian jets fired at the major Baku-Tbilisi-Ceyhan pipeline - but missed.

Automobile Association spokesman Mike Noon said last night that he had yet to receive an update on oil prices, but feared the weakness of the New Zealand dollar - now worth little more than US70c - and concern about the Georgian crisis may prevent more relief at local pumps.

Mainstream 91-octane petrol was still last night hovering above the $2 mark at 202.9c a litre at most city pumps, although Gull was selling its new biofuel "regular" grade at 194.9c as an opening special at its launch station at Albany.

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