KEY POINTS:
Petrol and diesel prices tumbled 6c a litre yesterday as oil industry minnow Gull Petroleum goaded its rivals into another marketing skirmish.
Although prices bounced back last night at Shell and Caltex stations - while staying temporarily low at BP and Mobil outlets - Gull claimed its third victory in less than a month in using its small number of strategically located sites to force the market down.
The four larger oil companies refused to admit discomfort at being harried by Gull, a family-owned West Australian business believed to account for no more than about 3 per cent of this country's fuel market through its 30 North Island stations.
The big players insisted they took independent decisions to hold their own price "promotions" yesterday.
But they made their moves against a trend of rising costs for imported fuel, winning praise from the Automobile Association for what motoring affairs manager Mike Noon was in no doubt was a response to Gull's lead.
"It is good to see Gull leading some competition and good to see the market responding," he said.
Shell spokeswoman Jackie Maitland said it was her company that led prices down yesterday, having got wind on Monday night of Gull's plan for a 5c drop between 7am and 7pm, and then undercutting that by 1c.
Gull was quick to match Shell's reduction, as were the other three oil companies, and claimed to be still selling diesel yesterday for 2c a litre less than most rival outlets.
But prices at Shell and Caltex main-centre pumps were last night back up to 155.9c a litre for 91-octane petrol and 101.9c a litre for diesel, as imported gasoline costs showed little sign of abating after rising almost 8 per cent in less than a fortnight.
Gull was also back at 155.5c for petrol at most of its sites, and slightly less at a handful of outlets.
Mobil and BP were keeping motorists guessing by maintaining the 5c discount prices. But the prices were considered unlikely to stay down for long this morning.
