Price wars: Is this the cheapest fuel in New Zealand?

Kiwis motorists will have a smile on their fuel dial as low prices are making their way to petrol stations.

A reader from Ōpōtiki, a small town in the eastern Bay of Plenty has told the Herald that their local petrol station Gull is selling 91 octane for $1.75 per litre and diesel at $1.15.

A petrol pricing app Gaspy also shows other petrol stations in the area including Caltex and Mobil have the same low prices.

This comes after Mobil in Te Rapa is selling 91 octane for $1.79 per lite and diesel $1.29 per litre when customers use their loyalty smiles card.

As part of their loyalty programme, participating Mobil stations are offering Mobil Smiles members 10 cents per litre for today only when they spend at least $40.

This cheap deal comes after two BP petrol stations gave away free fuel for an hour at the start of August.

The promotion at, Ormiston Rd BP in Auckland's Flat Bush and the BP at the corner of Woodham Rd and Gloucester St in Darlington, Christchurch, let motorists fill up for free between 11am and 12pm as part of an upcoming loyalty promotion.

BP said more than 700 vehicles filled up for free across the country before the clock struck 12.

Queues in Flat Bush stretched over several kilometres as people tried to take advantage of the giveaway, which was announced just 20 minutes before the pumps opened.

Prices that motorists pay at the pump tend to fluctuate with international oil prices, although other factors (like competition) also play a part in what stations charge.

The average price per litre in New Zealand is still well below the record highs that hit late last year.

In September, the national average price of fuel crept over $2.40 per litre, before dropping off again across November and December.