Petrol drops further 3c as world prices slump

Petrol companies yesterday cut prices for the sixth time since a September 19 rise linked to the terrorist attacks on the United States.

Caltex, Mobil and Shell cut petrol and diesel prices by 3c a litre, effective immediately, as world oil prices slumped on international markets to their lowest in more than two years.

The price drop took 91 regular petrol to 91.9c a litre, premium petrol to 96.9c and diesel to 63.9c, said Caltex spokesman Niall Kramer.

The price of regular petrol has fallen 18.6 per cent from $1.13 a litre and premium from $1.18 since September 19.

World oil prices tumbled to fresh two-year lows after Opec raised the stakes in a game of high-risk poker with rival oil producers.

The economic slowdown this year and the ensuing downturn in demand for petrol, which deepened following the attacks on the United States, has left Opec virtually powerless to keep prices buoyant.

Refined petrol from Singapore, the source of most of New Zealand's imported refined petrol, has fallen to its lowest price since June 1999.

The price is now $47.54 a barrel, down 37 per cent from $75.05 touched on September 16.

The story is similar for Dubai crude, the main crude oil imported by New Zealand oil companies. It is at its lowest since August 1999 and is at $40.58 a barrel against $65.72 on September 17.

- NZPA