AA: Don't expect many more petrol price cuts

Today's second petrol price cut in a week doesn't mean the recent trend of continual petrol price rises is at an end.

All four of the main oil companies knocked another 4 cents a litre off the price of petrol this morning but left the price of diesel unchanged.

Prices for 91-octane dropped to $2.11 a litre with diesel remaining at $1.88.

Independent company Gull remained the cheapest for petrol by 1c at $2.10 per litre for 91-octane and 2c cheaper for diesel at $1.86.

Automobile Association spokesman Mike Noon said the market was volatile and it was too soon to say if there is a trend yet or not.

"It is encouraging to see the market starting to trend down a bit having all of this year been on the rise," Mr Noon said.

He said there was talk of speculators cashing out and driving prices down.

"The world economy being a little bit quieter than it has been. This is a bit speculative but you may be getting a backlash through falling demand because of the high prices," Mr Noon said.

He said demand for fuel had dropped in May and June and that could be reflected in the price.

Mr Noon said the fall in petrol came at the right time and the 4c drop was the right amount but the association would like to see diesel drop also.

The falls follow a 4c fall at the pump late last week as a result of declining world prices for crude oil.

- NZHERALD STAFF

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