New Zealand's petrol price may be the product of 'profiteering' according to the Prime Minister, but we're still paying less at the pump than motorists in some countries.
Petrol prices have risen extremely fast over the past year due to a combination of global market forces, a weakening New Zealand dollar and tax increases.
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Jacinda Ardern has one culprit behind the high price in her sights, petrol companies, and the Government is rushing through legislation to allow the Commerce Commission to investigate pricing.
"We are literally changing the law so the Commerce Commission can go in and demand information from the fuel companies," she told The AM Show.
Ms Ardern said we pay the highest pre-tax price in the OECD for petrol, but we're actually in the middle in terms of global petrol prices.
According to website globalpetrolprices.com based on information from October 1 we're paying a fair bit more than Iran's $0.44 per litre.
But our average price of around $2.53 per litre is nowhere near the most expensive price listed on the site - Hong Kong's $3.33.
The United Kingdom ($2.65), Barbados (3.04) and Iceland ($3.11) are all paying more than New Zealand, but Montenegro ($2.46), South Africa ($1.75) and Australia ($1.72) are all paying less.
Tax makes up 69.98 cents per litre of unleaded petrol and 0.33 cents per litre on diesel. Auckland residents also pay an extra 10 cents per litre plus GST for the regional fuel tax.
The next tax rise will be in September 2019, when the excise on petrol will go up another 3.5 cents per litre.
Transport Minister Phil Twyford said the increase will fund $5 billion worth of investment into infrastructure.
Newshub.
