12 Jun 2015

Higher petrol prices tipped if dollar falls further

1:05 pm on 12 June 2015

The AA says further petrol price rises are inevitable if the dollar keeps falling.

Service stations are warning customers not to take risks to stock up on cheap fuel.

Photo: AFP

The dollar fell 2 percent against the US Greenback and a short time ago was sitting at just over 70 cents following the Reserve Bank's cut to the Official Cash Rate.

The kiwi has fallen 11 percent since January.

The price of 91 octane rose three cents per litre to $2.09 yesterday, but that was due to falling commodity prices.

The AA's principal advisor Mark Stockdale said it only took a few days for petrol companies to hike their prices when the dollar fell.

Manufacturers welcome falling dollar

Manufacturers are welcoming the falling dollar as they seek to capitalise on favourable export prices.

Manufacturers and Exporters Association chief executive Dieter Adam said it had come just in time in a sector struggling for profitability.

Meanwhile, the Importers Institute said businesses would not be badly affected, but it would mean the cost of things like cars and electronic goods would go up.

Reserve Bank Governor Graeme Wheeler said a lower dollar and reduced interest rates on lending could help hard-pressed farmers.

Their total debt now stands at about $30 billion.

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