Fuel prices at lowest level in six months

According to AA PetrolWatch, the price of 91 octane petrol at most outlets ended the month on $1.96 per litre, with diesel prices in many of the main centres falling to $1.18 per litre, although some service stations in the North Island are discounting prices below that.

“The price cuts were the result of a perfect combination of falling commodity prices and a rising exchange rate,” says AA PetrolWatch spokesperson Mark Stockdale.

“During October, a barrel of petrol fell about US$5 with diesel only down US$2, although diesel commodity prices had fallen in late September without any change in pump prices.

“At the same time, the New Zealand dollar increased 4 cents against the US dollar. Overall, that meant the imported cost of petrol fell nearly 9 cents in October while the cost of diesel fell a total of 8 cents since the last price increase in early September,” Mr Stockdale added.

According to AA PetrolWatch, the actual cost of fuel currently only makes up about a quarter of the pump price, with taxes making up nearly half of the retail price, and the remainder being fuel company costs.