KEY POINTS:
Holidaymakers stretching budgets against the financial squeeze at least have the consolation of the cheapest petrol for three years.
All five oil companies cut their petrol and diesel prices by 4c a litre yesterday, less than 24 hours after Energy Minister Gerry Brownlee said it was time they gave motorists more relief.
He said on Sunday he would be disappointed if the companies were waiting until after the holiday season to cut their pump prices.
The minister was in a different mood yesterday, praising the industry for acting promptly in passing down reduced import prices quoted for refined fuel when trading reopened in Singapore from the Christmas break.
"I know it's just a coincidence but it's a very happy one," he told the Herald.
The four main companies are now selling 91-octane petrol at city pumps for 135.9c a litre, which is the lowest price since the end of 2005 and 83c less than a peak of 218.9c on July 17.
That means fuel bill reductions ranging from $34.85 for filling the 42-litre tank of a 1300cc Toyota Yaris, to $56.44 for a 4000cc Ford Falcon - approximately the cost of a night at a camping ground for a family of four.
Diesel is 107.9c at most city stations, its lowest price since September last year and also 83c less than in winter.
Industry minnow Gull is, as usual, undercutting the majors by 1c for pure petrol and diesel and by 3c for its 91-octane biofuel blend.
Mr Brownlee said he was prepared to take the oil companies at their word "that these prices reflect refined prices".
But he believed there was still some way to go before refined prices reflected those of crude oil, which rose above US$147 a litre in July, but is now hovering around US$40 after dipping below US$37 last week.
The New Zealand dollar has weakened by 25 per cent since July against the United States greenback, which is the currency of oil traders, but Mr Brownlee said a closer match between refined petroleum and crude oil prices would more than make up for that.
Chevron spokeswoman Sharon Buckland said cuts by her company's Caltex brand had "nothing to do with Gerry Brownlee asking for the price to go down" but followed an assessment of import costs.
Shell communications manager Jackie Maitland, claiming line honours for her company as the leader of yesterday's cuts, said Shell reviewed its prices each day and acted as soon as possible to deliver the best price to New Zealand motorists.
It was followed by BP, which made similar comments about what it noted was its 22nd price cut since July.
Automobile Association spokesman Simon Lambourne, acknowledging the time lag between the prices of crude oil and the finished product, described yesterday's cuts at the pumps as reasonable and fair.
Yesterday's price cuts were not universally enjoyed, however.
One motorist called the Herald from the northern Hokianga Harbour settlement of Panguru to complain that 91-octane petrol had remained at 235c a litre since winter's record oil prices.
The management of the settlement's only service station, which is owned by a local Maori trust, could not be reached for comment but a woman who answered the phone said it was still selling old supplies and needed a fill-up from Mobil before it could reduce its prices.
FUEL SAVINGS
SMALL CAR
Toyota Yaris (1300cc)
* Tank capacity: 45 litres
* July 17: Cost of filling from empty $91.94
* Today: Cost of filling $57.09
* Cost saving: $34.85
MEDIUM CAR
Honda Civic (1800cc or 2000cc)
* Tank capacity: 50 litres
* July 17: Cost of filling from empty $109.45
* Today: Cost of filling $67.95
* Cost saving: $41.50
LARGE CAR
Ford Falcon (3984cc)
* Tank capacity: 68 litres
* July 17: Cost of filling from empty $148.85
* Today: Cost of filling $92.41
* Cost saving: $56.44
