20 Jun 2014

Iraq crisis pushing up fuel prices

9:28 pm on 20 June 2014

Fuel companies are blaming the Iraq crisis for a jump in prices for New Zealand drivers.

Iraq has asked the United States for air strikes against Sunni militants - spearheaded by the jihadist Islamic State of Iraq and Syria (ISIS) - who have made major territorial gains in nearly a fortnight.

Most of the major petrol companies lifted diesel and petrol prices by 2 cents a litre overnight on Thursday.

A spokesperson for BP, Jonty Mills, said the situation in Iraq has created a lot of uncertainty in the market this week, driving up the cost of oil products.

Caltex and Gull have not yet raised their prices.

The company's general manager, Dave Bodger, said although the situation in the Middle East has caused volatility in the crude oil market, the rising New Zealand dollar has cushioned the impact.

Mr Bodger says Gull will review its prices again on Monday and may have to raise them then.

The Automobile Association's petrol watch spokesperson, Mark Stockdale, said it's good to see that some companies have held off.