The price of petrol in New Zealand has increased by 25% in less than 12 months, staggering those who weren’t ready for such a drastic price hike .

Three main factors have laid cause to such a rise in a short time.

(1) A worldwide trend of higher prices for oil comodities, with barrel prices reaching US$72 a barrel.

(2) A currency correction of the New Zealand dollar versus the US dollar, has seen the over-inflated NZD drop in value against the greenback.

(3) Oil companies are greedy bastards!

Premium grade petrol price at the pump is now around $1.72, and regular grade around $1.68.

For most families on the average income, the recent rises are starting to hurt.

I spoke to an office worker recently who was earning $550 per week after tax, but spending around $90 - $110 per week on petrol!

Of course it has to be said that Kiwi’s need to get out of the “three and a half cars per household” mentality.

But in many of the major cities our public transport facilities are dismal by worldwide comparision -The result of years of indecision, and poor planing by both local and central governments.

With petrol and housing cost rises in the double figure percentages, and the average wage earner getting only around a 4% anual wage increase, (Barely enough to cover inflation) - it doesn’t take a genius to predict the short-term future.

With news of Australia becoming debt free this week, one has to wonder if New Zealand will ever close the financial gap between the two countires.

New Zealand has just had 6 years of “financial growth”, but our debt and trade deficit is growing and inflation is on the increase…