Crude oil pumps up fuel prices

17 August 2018

Higher fuel prices contributed to rises in producer output prices (up 0.9 percent) and input prices (up 1.0 percent) in the June 2018 quarter, Stats NZ said today.

Higher prices received for whole milk powder also contributed to the increase in overall output price.

Input prices are the prices producers pay for goods and services. Output prices are the prices producers receive for their goods and services.

Oil is a significant source of energy for New Zealand. Changes in the price of oil affect the overall prices paid by households and businesses. In New Zealand, fuel prices are affected by the prices of imported crude oil and domestic oil production, and the exchange rate.

Text alternative for Producers price index – flow of fuel industry commodities, June 2018 quarter

In the June 2018 quarter, higher prices for imported crude oil increased the costs paid by the petroleum and coal product manufacturing industry (up 11.3 percent).

The higher cost for buying crude oil was passed on to petroleum products. The petroleum and coal product manufacturing industry received higher prices (up 10.9 percent) for petrol, diesel, other petroleum products (eg aviation fuel and fuel oils).

Petrol bought by businesses was up 5.5 percent while diesel was up 9.8 percent. These higher costs for fuel flowed to other industries. For example, input prices for the road transport industry rose 2.0 percent in the June 2018 quarter, mainly due to higher petrol and diesel prices.

The Government Statistician authorises all statistics and data we publish.

Text alternative for Producers price index – flow of fuel industry commodities, June 2018 quarter

Diagram shows a simplified view of the flow of fuel industry commodities, with key price changes highlighted, across the supply chain. Fuel products are both imported and produced domestically in New Zealand. They can be further refined by the manufacturing sector or be sold directly to companies such as petrol stations and exporters. These companies then on-sell to other local or international businesses and households.

Prices paid for input commodities (eg crude oil) by businesses in the petroleum and coal product manufacturing industry increased 11.3 percent from the previous quarter. The prices received for the sale of output commodities (eg petrol and diesel) by these same businesses increased 10.9 percent.

Petrol stations then pass on these increases to businesses and households.

For more information about these statistics:

• Visit Business price indexes: June 2018 quarter

• See CSV files for download

ends

© Scoop Media