WELLINGTON - The Automobile Association has welcomed yesterday's petrol price relief for motorists as a "pleasant change."
A succession of recent increases was reversed as the four major oil companies dropped rates by 2c a litre.
The drop took the price in main centres to $1.059 per litre for 91 unleaded and
$1.109 for premium.
"They [oil companies] seem to be much more responsive to international trends, and I guess that means we must expect that pricing will be more volatile," said AA spokesman Geordie Cassin.
"Now we are seeing movements much more quickly. That's not been too good for motorists in recent times because we've seen prices shoot up, but today is a pleasant change."
West Texas Crude, a benchmark oil price, closed yesterday at $US29 ($63.65) a barrel. A week ago it was selling at $US30.45, and the New Zealand dollar was lower against the US dollar.
Statistics NZ figures released yesterday showed retail petrol prices rose 4.5 per cent between the December 1999 and March 2000 quarters.
"Prices are 19.6 per cent higher compared with the March 1999 quarter and are at their highest level since March 1993," said Deputy Government Statistician Ian Ewing.
Earlier, Jane Diver of BP said the drop was the result of a slackening in the market for refined petrol and a firming of the New Zealand dollar.
Shell spokesman Antonius Papaspiropoulus said the company was optimistic about further price drops as Opec (Organisation of Petroleum Exporting Countries) had come under increasing international pressure to release more oil on to the market.
- NZPA
