Fuel prices are at their lowest level for a year after cuts of 6c a litre yesterday for petrol and diesel. The cuts, by all five oil companies, followed a reduction in import costs triggered by a rally by the New Zealand dollar.
Petrol, at 166.9c a litre
for the main 91-octane grade at most main-centre pumps and 1c less at Gull stations, is now cheaper than at any time since the beginning of November last year.
It has dropped 52c since July 17, when it was at a record price of 218.9c.
The new diesel price of 125.9c is the lowest since the end of November last year, after falling 66c since mid-July.
Shell was the first to announce the latest cuts, saying they followed a stabilising of the Kiwi dollar and a decrease in international oil prices.
But spokeswoman Jackie Maitland said the market remained volatile, and the company would review its prices daily "so we can pass on the best available price to our customers".
By 5pm, the kiwi had risen to US59.27c, more than 5c stronger against the greenback than at its low point of a week ago.
Automobile Association policy analyst Mark Stockdale said international prices, plus the kiwi's recovery, had given the oil companies enough "buffer" in their margins to share the benefits with motorists.
