Fuel prices drop, but still not enough -- AA

Companies cut petrol prices.

At least three fuel companies cut pump prices by 2 cents this morning after a big slide in global oil prices, but calls have been made for further cuts.

United States crude futures have dropped nearly US$6 ($8.46) a barrel since Wednesday to just above US$43, bringing them more than 20 per cent under the record peak US$55.67 hit in late October.

It was reported in the US as being the biggest two-day slide since 1991.

Three New Zealand fuel companies confirmed they had cut prices by 2c a litre this morning but gave no indication of further cuts.

Automobile Association public affairs director George Fairbairn told NZPA the price drops needed to be put in context considering they rose 3 cents across the board last week.

"I think there's justification for an even greater move. Prices went up last week, which seemed to be against what the New Zealand dollar was doing at the time."

Mr Fairbairn said he would be looking for further drops in the near future and motorists would be doing the same.

A BP spokesman said there was still nervousness about oil supply in the Middle East and stockpiling in the US, and the strength of the New Zealand dollar wasn't enough to offset that.

Shell said this morning's cuts were in response to the drop in oil prices, but it was still an "incredibly volatile" period for the product.

Fuel prices fluctuated a lot during November, with the average nationwide pump price for 91 Octane varying between $1.18 and $1.22 per litre.

The same variation applied to 96 Octane, which reached a low of $1.23.

The average pump price for diesel in most main centres varied between 80 and 83 cents.

- NZPA