Gull to hold down petrol price at the pump temporarily despite tax

Gull is planning to give drivers a few extra days before applying a new fuel tax to its petrol prices.

From Sunday at 12am, petrol prices across New Zealand will increase by 3.5 cents as the new fuel excise tax comes into effect.

However, Gull will not apply the tax immediately, opting to hold its prices until at least Wednesday, October 3.

"We plan to sell our existing fuel stocks at current prices until mid-next week," Gull spokesman Rohan Mehta said.

"This stock was bought prior to fuel excise tax increase and we think it's appropriate to pass on the pre-tax savings to our customers.

"Lately, the country is witnessing record petrol prices ever recorded, and we are determined to offer some breathing space wherever possible," Mehta said.

"The fuel excise tax is inevitable, and we will be putting up our prices but that can wait until mid next week."

There were long queues outside Gull service stations for two days recently when the company decided to drop its fuel price 12c to $2.05 a litre for 91. Thereafter, Gull increased the price of 91 up to its current average of $2.17 per litre.

Average prices into mid next week would be $2.169 for 91, $2.319 for 98, and $1.471 for diesel.

Mobil and Z confirmed they would go ahead with the price hike on Sunday.

The latest tax follows the introduction of a regional fuel tax, which hiked the price of fuel by 11.5c in Auckland earlier this year.

In papers released to the Herald under the Official Information Act in June, Transport Minister Phil Twyford flagged increases of between 3c a litre and 4c for each of the next three years to fund transport plans such as light rail from the CBD to the airport.

The impact of these increases has led to petrol prices in some parts of the country reaching more than $2.40 per litre for 91.

According to the app Gaspy, where users input fuel prices around the country, as of this morning the national average for 91 octane was $2.282 per litre, diesel $1.605, 95 $2.422, and 98 $2.476.

There were large discrepancies between different regions, and Auckland where a 15c a litre fuel tax was introduced on July 1. However, it was still much cheaper there than in the other main centres.

The cheapest price for a litre of 91 in Auckland was at Gull Glen Eden, at $2.17, in the Wellington region it was $2.32 at BP Porirua, in Christchurch $2.30 at NPD Mandeville, and Dunedin $2.35 at Allied Portobello.

ACC yesterday also proposed a further increase to fuel prices, by increasing the road user levy by 2c a litre.

ACC has proposed the levy be increased to help pay for the increasing costs associated with the higher number of road accidents across the country.

ACC Minister Iain Lees-Galloway said ACC would have to make a "very strong case" for the increase, as the Government was "acutely aware" families faced rising living costs and had had suppressed wages for 10 years.