A tiny fraction of increase in fuel prices because of the introduction of the Emissions Trading Scheme will not be sufficient to restrain motorists' fuel use, the AA says.

Fuel prices were stable for most of June, apart from a tiny increase at the end of the month, as the strong New Zealand dollar counterbalanced the rising international crude oil rates, AA said in its monthly report.

On the other hand, petrol and diesel prices have by now seen an increase this month after the introduction of the ETS was made, yesterday.

Petrol and diesel increased by 3c per liter at most outlets, apart from Gull, as firms passed on higher prices under the ETS, which the Government introduced to assist in curbing greenhouse gas emissions.

The typical motorist, driving 14,000km each year, would pay an additional $40 in yearly fuel costs owing to the ETS, the AA estimated.

AA PetrolWatch representative, Mark Stockdale said that fluctuations in the rates of fuel prices can be seen all the time which cannot be expected to have lessened the consumption.

Further fuel price increase may be looming around, with a rise in GST and petrol excise in October probable to add a total of 7c per liter to petrol and 6c per liter to diesel.