Regular petrol – 91 octane – is now $2 a litre – well, $1.99.9. Although this price is high, in July 2008 it reached $2.19. At that time, the price of a barrel of oil was higher and the kiwi dollar was lower. Now the price of oil is around $100 a barrel and the kiwi dollar is strong. However, the price of imported oil has risen 15% since December 1st and this is why the cost per litre has gone up.

When we compare our petrol price with that paid by Americans or Canadians, we feel we are paying too much. In California, petrol is less than US$1 a litre – as little as 90c at some petrol stations, while in parts of Canada it is just over a Canadian Dollar for a litre. However, in most countries in the world, petrol costs more than $2. Most countries in the world add a lot of tax to the price of petrol.

In New Zealand we pay 59c tax on every litre. This is for roads and transport. We also pay 3c carbon tax, and 7.7c GST.

Diesel is $1.36 a litre but owners of diesel vehicles pay a road tax separately.

Questions

How much is petrol in your country?

Do you think a large tax on petrol is a good way for government to collect money?

Will the higher price of petrol encourage more people to use public transport?