Retailers stand to benefit from consumers having a few extra dollars in their pockets as a result of a drop in fuel prices, an industry group says.
Z and BP's national price for 91 unleaded petrol sat at $1.969 a litre yesterday, roughly 25c lower than peak prices last month.
Prices have fallen even further in some regions, with 91 hitting $1.939 a litre at BP stations in Auckland this week, according to fuel transaction monitoring website PriceWatch.
BP managing director Matt Elliot said petrol had fallen below $2 a litre across the country last week for the first time since August last year.
Local motorists are benefiting from falling international oil prices - benchmark Brent crude hit an 18-month low of US$90.62 a barrel last week - and a strengthening kiwi dollar, which makes imported oil cheaper.