While petrol companies scramble for the sales high ground, motorists are enjoying another drop in pump prices - to their lowest level since mid-May.
After last week's 6c a litre drop, companies yesterday indulged in another round of tit-for-tat price cuts.
Shell - which started last week's slashing - got the ball rolling yesterday morning with a 3c cut, quickly matched by most of the competition.
BP was the exception, dropping its prices 4c a litre, matched by its rivals later in the day.
In the main centres, fuel now costs about $1.029 for 91 octane, $1.079 for 96 octane and 72.9c for diesel.
Shell said that with sales increasing as a result of its pricing, it could trim margins further.
"Shell is committed to being the most innovative, cost-competitive company in the country," said spokesman Antonius Papaspiropoulos.
"Motorists are responding to our better prices, and our service stations are enjoying this new brand loyalty. As a result, we are able to pass on another benefit to customers."
BP retaliated by saying it had "led more price drops this year than any of its competitors, and would continue to do so."
Managing director Peter Griffiths said BP's price cut "reasserted its market leadership."
Caltex pricing manager Drew Cowley felt prices could drop further.
"Caltex is really the little kid on the block," he said.
"It looks like the two big kids are having a sandfight, and I feel it has the potential to continue."
A Mobil spokeswoman said it was matching the drop due to "market forces."
- NZPA
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