Petrol prices down again

Motorists are being more than compensated for the Government's 5.6c a litre petrol tax rise, after the fourth price cut by oil companies in the past month.

The latest cut, of 2c at the end of last week, means most main-centre service stations are now selling 91-octane petrol for 118.9c a litre.

This compares with a price of 129.5c reached when the Government lifted its petrol tax on April 1 to raise more money for new roads and other transport infrastructure.

What is now the lowest price since February earned oil companies praise yesterday from the Automobile Association, which expressed hope it could be maintained over winter. "They have responded to the falling world oil price and it seems it is probably going to stay down as the Northern Hemisphere summer comes," said AA spokesman George Fairbairn said.

He also noted that motorists were still being cushioned by a relatively high New Zealand dollar.

But BP, which is battling to regain market share from Shell and claims to have led the latest two retail cuts, denies that what motorists pay at the pumps reflects the world oil price.

"There is really strong retail competition at the moment and it is not linked to the price of a barrel of oil," said spokesman Jonathan Hill.

"Margins are very, very tight."

Pump prices

April 1 - 129.5c a litre

Yesterday - 118.9c a litre