Hawke’s Bay petrol at $2 a litre ‘as good as it’s going to get’

So close, but may be not quite. The prices at Gull Taradale Rd today, with 91 octane a fraction over $2 a litre. Photo / Warren Buckland

The pump price of 91 octane petrol has dropped to just over $2 at one chain in Hawke’s Bay but a leading fuel prices commentator predicts that’s “about as good as it’s going to get, and enjoy Christmas while you can”.

The price at Gull Taradale Rd, Napier, dropped to $2.00.7 a litre at 7am on Thursday as part of Gull Fuel’s nationwide discount of 20 cents a litre in place till midday on Friday. It was $2.30.7 a litre for 98 octane and $2.04.7 a litre for diesel.

At the chain’s Omahu Rd station in Hastings it was reduced to $2.09.7, but at least five stations in Waikato and Bay of Plenty Gull’s 91 Octane price had dropped under $2, the cheapest being at Atiamuri, off State Highway 1 between Taupo and Tokoroa, where it was $1.85.7 a litre.

It’s the lowest price seen in at least two years.

It comes near the end of a year in which average prices nationwide of more than $3 a litre led to the Government, amid the rising cost of living globally, introducing a 25 cents per litre excise tax reduction.

The reduction has been extended to the end of February after which it will be reduced to 12.5 cents.

In a statement this week, Energy Minister Megan Woods said: “Since we brought in the 25-cents-per-litre cut, retail prices for regular 91 have dropped by about 75 cents per litre - including the excise cut”.

Automobile Association New Zealand principal policy advisor Terry Collins told Hawke’s Bay Today although global oil prices had dropped in recent weeks, there had been a $7.30 per barrel rise in the last seven days.

Further increases were expected with global pressures, such as China’s relaxing of border restrictions which had immediately increased airline demand and pressure on the availability of Avgas.

Thus the prices on Thursday were about as “good as it’s going to get,” he said.

Other chains in Hawke’s Bay did not appear to be making any moves to match Gull’s effort, with 91 octane prices still over $2.25 a litre on average, although regular discounts on discount card use had been applied.