KEY POINTS:
Shell said today it had cut the price of petrol and diesel by 5 cents a litre.
Shell initially announced a 4 cent a litre cut, but BP leapfrogged it with a 5c cut and Shell matched that.
A Shell spokewoman said falling international crude oil prices and the rising New Zealand dollar were behind the petrol price cuts.
Prices were cut seven times in as many weeks starting in mid-September. Today's drop means 91-octane is now $1.38.9 a litre, 95-octane is $1.43.9 and diesel 96.9c.
The price is now only 2c above where it was a year ago.
Crude oil prices have fallen to US$58 ($87) a barrel from a peak in July of US$78.40 in their steepest decline since the Gulf War in 1991.
Easing Middle East tensions, ample fuel stocks and slowing US economic growth are behind the fall.
Simultaneously, the New Zealand dollar has risen sharply -- up 10 per cent since June. It strengthened overnight to a new 8-1/2 month high against the greenback, getting to US67.50c.
- NZPA
