Can’t Add? Watch Out, The Fuel Companies Are Out To Rip You Off!
We all know ther Kiwi dollar has been making vast gains against the Greenback, to the point of 25 year highs that were just reached this month.
Does any NZ motorist remember that only months ago, NZ petrol and diesel prices had rollercoaster price movements because of the NZ dollars value against the US dollar.
It might pay for me to point out that over the last few months, our fuel prices have remained virtually unchanged, despite massive movements in the currency.
It could be said that the massive price variations ended at about exactly the same time as supermarkets started offering fuel discount vouchers with purchases.
Do I smell a conspiracy? You bet!
Fuel prices in NZ now are overvalued, based upon the New Zealand dollars buying power being unusually high against the US.
Before the fuel voucher system, motorists were aware that a high currency in NZ meant petrol prices would go down. Now fuel companies have more buying power than they have ever, but prices remain comaparitively high.
No-one however is complaining.
Here’s how ridiculous the “savings” can be. I purchase $20 worth of Diesel (roughly 20 Litres at current price). I go in to pay for the fuel and the attendant says, “If you spend $4 or more on Grocery items instore, you’ll receive a 4-cent per litre discount on your fuel”.
So they want me to spend $4, to save around 80 cents on the fuel I just bought?
This type of marketing is proof the average Kiwi is mathmatically illiterate.
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4 Comments
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Motoring in NZ, Petrol Prices, Ahh, Conspiracy Theorist at Work, Money & Finance, Automotive
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August 19th, 2007
Hey genius oil prices went from $67 to $78 between June and August wiping out any potential petrol price drop created by NZD rises.
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Hone Watson
August 20th, 2007
Partially true, but isn’t it interesting that when spot barrel prices fall, the price at the pump remains the same?. The NZ Dollar has been appreciating at a rate higher (percentage-wise) than the oil commodities. You’d only expect prices to remain constant if the two grew at the same rate!
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Vaughan Wylie
October 23rd, 2007
I don’t know what your current bowser prices are but I suspect about $1.60 odd. All I can say is enjoy at this level while you can because they won’t be falling. When interest rates in NZ start to decline early next (08) year, and the kiwi dollar is then no longer an attraction for offshore investors, I believe you will start seeing $2 plus for a litre. At least it will still be cheaper than what they pay in the UK and Ireland. Best place to come is Queensland - warmer weather and cheaper fuel (even NSW subsidise the Queenslanders) - current bowser price is about A$1.15.
Cheers.
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davali
January 26th, 2008
another price anomaly to look at is the price diferance between petrol and Diesel, back it the early 90’s I bought my first Diesel and the price was approx 45c/lt and petrol was 91c/lt almost double the price of diesel, so going by todays prices petrol should be $2.50 ltr or Diesel should be 80c/lt.
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mowaman