How to decide petrol price.

Now a day, it seems like that petrol price is like heavy wave. That is like too much up and down. Just 2 weeks ago, petrol price was 245 cents but now is 215 cent. While 2 weeks that changed 10% more.

So i feel curious and search why it happen like that.
First, Let's see how to decide petrol price.

(Source-https://www.aa.co.nz/cars/owning-a-car/fuel-prices-and-types/how-petrol-prices-are-calculated/)
As we can see, we can find four major point which can change the price.
Refine fuel - Obviously, most effective point is original fuel price. That is depending on international oil price. International oil prices are on the decline nowadays. The price of oil that has gone down considerably is one of them.

Fuel excise - This is also a very important factor and accounts for about 30% of the oil value. Domestic consumption tax is simply a tax imposed by the country, and New Zealand is adhering to environmentalism as a policy, and crude oil, which is one of the causes of harm to the environment, is taxed high. It is expected that higher taxes will be imposed, as oil tax now in Auckland will be implemented nationwide soon.

GST - Another type of tax is the tax that applies to all consumption, not just crude oil. In the end, crude oil is one of the reasons for double taxation and higher oil prices than other countries.

Importer margin - A 19 percent profit from a crude oil importing company is not always the case, but there is news that an oil company has tried to fix it in old New Zealand articles, raising questions about whether 19 percent is true. However, it is expected that it will not happen with a high probability because collusion is difficult because it is not one or two crude oil companies.


Looking at the share of crude oil price, it is difficult to say that the current price of crude oil has fallen due to the temporary decline due to the fall in oil prices, but the price has still exceeded 200 cents. However, it is expected that oil prices will rise again in Christchurch soon. As I see this, I feel a sense of New Zealand crude oil prices and I think it is possible to predict crude oil prices to a certain extent by reading international oil prices and the government's crude oil measures.