Weekly Average Components of Regular Petrol Price
[ Last Updated 10 September 2008 ]
Graph 6: Weekly Average Components of Regular Petrol Price
Sources: Argus, Hale Twomey, MED (for New Zealand prices), Reserve Bank of New Zealand
For the details of the tax component please see Duties, Taxes and Direct Levies on Motor Fuels (Excluding GST) (Cents per Litre).
Graph 6, above, shows the make up of the retail price of regular unleaded petrol. The graph breaks the retail price down into taxes and levies, importer cost, and importer margin. The importer cost is based on the Singapore benchmark petrol price plus an estimated quality premium and an assessment of the importation costs of freight, insurance, losses, and wharfage. Assumptions for the quality premium (US$4 per barrel versus US$1 per barrel) and importation costs of freight have been revised back to 1 January 2008 in light of recommendations contained in New Zealand Petrol Review (www.med.govt.nz/nzpetrolreview). MED uses the price reporting agency Argus for the benchmark Singapore petrol price. The importer margin is calculated by the Ministry as the retail price less taxes and levies, and less the importer cost. That is, it is the margin available to the importer to cover domestic transportation, distribution and retailing costs, as well as wholesalers' and retailers' marketing margins. The importer margin is lagged by one week, i.e. we assume that retail prices this week are based on the importer costs of last week. Statistical analysis has shown this to be a reasonable assumption.
Back to Top