FAQs About Fuel Pricing
The Price of Fuel at the Pump
- Crude oil and refined oil products are internationally traded on the US market which is influenced by many factors including the manufacturing capability and worldwide supply and demand. Crude oil is purchased by refineries internationally and then it is used to make refined oil products such as petrol and diesel, these refined products are also then traded internationally and have their own pricing structure which is typically higher because of the added cost of the refining process to get a product that you can use in your vehicle. RDP prices its products based on refined prices although the crude oil prices are factored in they are not directly linked.
- Exchange rates and freight price fluctuations are a major player when comparing our NZ pump prices with international prices. Because product prices are set in US dollar, any drop in prices can be quickly offset by the NZ dollar dropping in value.
- Fuel taxes and levies are a significant chunk of the price you see at the pump which is set by the NZ government (please see graphic). You can also find more info around this on the Ministry of Business, Innovation and Employment website.
- The Emissions Trading Scheme (ETS) is a component of pricing to meet the requirements of the industry under ETS since 2010, many businesses are required to submit emissions units (carbon credits) to the government to cover CO2 equivalent emissions, this quantity is based using a formula set in regulations.
- The graphic on this page gives a great insight into how we calculate pricing.