Motorists are enjoying their first fuel price cut in nine months, after the main oil companies eased the throttle yesterday by 6c a litre on petrol and diesel.
The move came less than a week after 91-octane petrol rose 3c to a record $2.22 a litre, which the Automobile Association
said was unjustified in view of the strength of the New Zealand dollar against a weak United States greenback.
But last night it was down to $2.16 at most city pumps, reflecting a dramatic drop in crude oil prices late last week, which quickly lowered refining costs.
Diesel, which did not rise in price last week, was down to an average of $1.58 although with some variations.
Oil industry minnow Gull, which refrained from raising its prices last week, dropped its 91-octane biofuel blend to $2.14 yesterday and diesel to $1.57.
General manager Dave Bodger said his company's restraint should raise questions about why the large companies needed to lift their prices at all last week.
AA spokesman Mark Stockdale said yesterday's price cuts, the first since August, would be seen as desperately needed relief by many motorists.
He also hoped there was room in the latest global market movements for another cut this week.
But Mr Stockdale warned that the long-term trend was for rising prices and motorists could not expect them to drop below $2 a litre again.
