Extra savings as fuel price plunges

Sheree Houghton thinks the drop in petrol prices is great as she can fill up more often to go on outings with her two children. Photo / Ruth Keber

Motorists wanting to make the most of cheaper fuel can save up to 12c a litre if they shop around as petrol prices across New Zealand continue to drop.

The drop in fuel prices - to the lowest in more than four years - is expected to have a knock-on effect on other products as businesses spend less on transporting goods, meaning lower prices for consumers.

New Zealand has seen a record run of price cuts, with 16 over the past three months, as a combination of falling global crude oil prices and a strong dollar works in motorists' favour.

A survey of nine service stations around Tauranga yesterday found prices varied by up to 12c a litre. Some stations were charging as little as $1.73.9c a litre for 91 petrol and just 97.9c for diesel.

Motorist Sheree Houghton said she did not normally check the petrol prices but noted the cheaper deals across the city when she was filling up at Mobil station yesterday afternoon.

"Normally I take advantage of discount vouchers from the supermarket although I have started to note the prices as I drive past servos now and then," she said.

Miss Houghton said she used to just go to one petrol station, Caltex, as she also had the discount AA card for it but now filled up at Gull or Mobil, depending on where she was, as they seemed to be the cheapest stations.

The drop in price meant the mother of two could fill up her car to "spend more time out in the awesome sun with my children", including outings to the beach and trips to see her family.

Z Station owner Dave Gillies said it had been a busy time of year for his service stations located from Bethlehem to Opotiki.

"I guess the aim of the game for us is being on the pace with price as long as we are being competitive, it's an extremely busy time of year for us, even though people were heading back to work on Monday."

Mr Gillies had seen more people filling up boats and other petrol-powered toys now that the price had dropped.

"When you think petrol was well over $2 a litre compared to where it is now, it's not quite so hard on the pocket."

Graham Stirk, retail manager for Gull stations, said there had been a worldwide oversupply over petrol leading to cheaper prices.

"It's simply supply and demand."

Mr Stirk was unsure how long petrol would stay as cheap as it was.

"It's crystal ball stuff, I wouldn't want to comment on that."

Additional reporting NZME.