Petrol prices continue to plummet

Petrol prices continue to fall the price of 91 has fallen six cents in two days. Photo / Jason Alden

Petrol prices have fallen again today, with 91 Octane up to four cents cheaper at major retailers than it was yesterday.

The price of 91 has fallen six cents in two days and it was selling for 175.9c at Z Energy outlets this afternoon.

Diesel dropped a further two cents a litre today, this afternoon selling for 109.9c a litre at Z, the major fuel company the Automobile Association (AA) has credited with leading price cuts.

There was some variation between regions, stations, and companies, with some Gull outlets selling diesel for less than $1 per litre.

Data from one price monitoring site suggested a price war between Mobil and Caltex was under way in parts of Auckland.

The PriceWatch website, which sourced data from stations accepting CardLink fuel cards, said the cheapest Auckland petrol yesterday morning was in Otara and East Tamaki, where Mobil and Caltex both had stations, and at Z Papatoetoe. All these stations had 91 for 162.9c a litre.

Of the stations PriceWatch surveyed, the dearest 91 was at Gas Alley Lewis Pass and Z Onetangi, on Waiheke. At both locations, 91 still cost over $2 a litre within the past 48 hours. However, the AA has previously said the most remote or inaccessible locations were likely to have higher prices.

The AA said at current commodity prices, the imported cost of petrol made up less than 30 per cent of the retail price.

Taxes were responsible for half the cost and fuel company margins the rest.

The AA said fuel company margins were the highest they'd been since the 1980s.

"The global commodity price for petrol has fallen 43 per cent since early October, down from US$115 per barrel to US$65 for a barrel yesterday," senior policy analyst Mark Stockdale said on the AA website.

"This includes the cost of oil, plus refining. Converted to NZ dollars, that equates to a reduction of 40c per litre."

Ministry of Business, Innovation and Employment (MBIE) statistics showed petrol was much cheaper in Australia, Canada and the United States than in New Zealand. But prices here were lower than in France, the United Kingdom and Ireland.