KEY POINTS:
Fuel companies have only passed on half the savings they can afford to when it comes to diesel prices, the Automobile Association says.
Petrol and diesel prices are dropping by four cents a litre across all major petrol stations today.
Automobile Association senior policy analyst Mark Stockdale said
the petrol price fall was fair but diesel prices could have fallen by as much as eight cents a litre.
He said there had been a significant drop in the refined price of diesel and the dollar had remained stable.
Mr Stockdale said the importer margin - the cost of importing petrol, minus taxes, freight and product cost - has been at the high end of the range.
"They've been able to pass that reduction on which is timely and reasonable - I wouldn't have expected anything more - except for diesel, which we would have expected double what they have actually done," Mr Stockdale.
Shell spokeswoman Kylie Reeves said the fall in fuel prices was due to a decrease in the international prices for refined fuel.
She said Shell reviewed the price of crude oil, refined product and the strength of the New Zealand dollar which had done enough to justify a decrease in prices at the pump.
Ms Reeves said the drop would be "great news" for motorists as summer holidays approached.
Gull's retail business manager Graham Stirk said the fall came on the back of the international price fall, despite the dollar "hopping around a bit".
"But it's moving in a cent or two's range, it isn't making huge movements, so we can pass those savings on," Mr Stirk said.
Earlier this morning, he said Gull would have dropped prices by 11.30am
Caltex spokeswoman Caroline Blind said Caltex would also be dropping fuel prices but she could not say when.
She said Caltex had also seen a reduction in the international price.
Mobil spokesman Alan Bailey said Mobil was dropping prices but it that it took some time for the "message to get around the network".
"What we're seeing is a continued weakening in the regional market which is providing us room to move and coupled with others doing it. Out there in the retail market that we're competing in, you can't sit out there with a substantially different price for very long," Mr Bailey said.
BP spokesman Neil Green said the prices of crude oil and refined fuels had fallen over the last two days.
Shell
91: 139.9 cents
V-Power: 144.9 cents
Diesel: 116.9 cents
Gull
91: 138.9 cents
Regular Plus: 136.9 cents
Diesel: 115.9 cents*
Caltex
91: 139.9 cents
Premium: 144.9 cents
Diesel: 116.9 cents
Mobil
91: 139.9 cents
95: 144.9 cents
Diesel: 116.9 cents
BP
91: 139.9
Diesel: 116.9
*Prices may be lower at some stations.
- NZHERALD STAFF
