Lower crude oil prices as traders speculate on a quick war in Iraq has led to BP dropping petrol and diesel prices by three cents a litre, the company announced today.
Crude prices had dropped $6 in the past five days, but prices could go either way in the next fewweeks, BP managing director Peter Griffiths said in a statement.
"What happens next to prices depends on what happens in the Middle East, but motorists should prepare for a lot of volatility," he said.
Most BP-owned service stations were now charging $1.129 per litre for 91 octane, $1.179 for 96 and 72.9 cents for diesel.
BP would drop its wholesale price to 250 independently-owned BP stations by three cents a litre from midnight tonight. Those stations set their own pump prices.
Mr Griffiths said regions already receiving discount prices may not see a price change.
Shell New Zealand later announced it was matching BP's petrol price reduction, effective immediately.
Shell's retail manager Mark Nobilo said that in "such a highly volatile international situation, Shell is not able to predict which way prices may head in the future, but we are pleased to be able to pass on some savings to customers today"
The price of 91 grade petrol falls o $1.129 per litre, 96 grade petrol to $1.179 per litre and diesel 72.9 cents per litre, or cheaper at most Shell service stations.
