Petrol and diesel prices drop

File photo / Christchurch Star

The price of petrol and diesel dropped at Shell, BP, Gull and Mobil petrol stations this morning.

Shell, BP and Mobil are now selling 91 octane fuel for 162.9 cents a litre and diesel at 103.9 cents a litre. Gull is selling both products for one cent cheaper.

Shell Spokeswoman Kylie Reeves said the drop in price was due to the cost of refined fuels on the international market and the strength of the Kiwi dollar.

New Zealand petrol companies buy their fuel on international markets in US dollars.

BP spokeswoman Diana Stretch and Mobil spokesman Alan Bailey said the strength of the Kiwi against the US dollar had helped to lower the price of both diesel and petrol on the overseas market.

Gull business manager Graham Stirk said that both diesel and petrol prices had continued to fall on the overseas market and the Kiwi dollar had remained strong.

The New Zealand dollar pushed up to another one-year high against a broadly weaker Greenback over the weekend.

The Kiwi peaked at around US70.85 cents early on Saturday, from US70.42 cents at 5pm on Friday, and by 8am today it was buying US70.54c.

The Automobile Association has said the fall in prices was due but that diesel should drop a further 3 cents a litre.

AA policy analyst Mark Stockdale said the high dollar had increased petrol company margins.

"There's still plenty of room for diesel to come down," Mr Stockdale said.

Ms Stretch said the international price of petrol and diesel had dropped at the same rate, when asked if diesel prices should drop further.

"I don't know where that comment came from," Ms Stretch said, referring to Mr Stockdale's call for diesel to drop further.

When asked if diesel prices should drop further, Mr Stirk said there had been drops in petrol and diesel on the international market but he did not want to comment on further price drops.

Caltex has not returned phone calls.

- NZHERALD STAFF