Over-supply and strong kiwi = petrol price drop
Petrol prices have continued their slide, with the major oil companies cutting pump prices by another 3 cents a litre this week.
Yesterday's drop was the seventh consecutive reduction in a row.
A litre of 91 octane now sells for 204.5c at most service stations across the country - its lowest level since July last year.
Diesel also saw a reduction, with prices cut by 2c a litre to sell at between 141.9c and 142.9c.
The industry said the reductions are due to falling international demand on the back of a weaker economic outlook, as well as over-supply and the continued strength of the New Zealand dollar.
In total, prices have now fallen 16c a litre since the mid-February highs, when petrol pump prices peaked at 220.9c a litre.
In real world terms, that means motorists can drive an extra 24 kilometres on $50 of fuel, according to Dominion Post calculations.
Automobile Association spokesman Mark Stockdale said that was an extra 938 kilometres per year for the average motorist driving a typical 2 litre car, or a saving of $145 a year on 12,000km of travel.
He said at this rate fuel prices are on track to break below the $2 mark before the end of the year, but the pace could be even faster if oil companies passed on more of their margin to motorists when input costs changed.
"Although the price cuts are coming quickly enough, they're not big enough," he said.
The Dominion Post