Petrol price drops on soaring dollar

23:23, Apr 11 2013

Petrol prices across the country are dropping again, with BP and Z Energy cutting their prices by 2 cents a litre, and Caltex saying they're likely to follow later today.

The cut marks the third time in just over a week that BP and Z have cut prices, which have been on a downward trend since early March.

BP and Z are now selling 91 octane at 209.9c a litre across most of their service stations, 95 octane is retailing for 217.9c, and diesel is now selling at 146.9c a litre.

BP spokesman Jonty Mills said the price drop was a further reflection of the gradual decline in the cost of refined petroleum products on the international market.

"This, coupled with another spike in the NZ dollar to its highest point in two years, has enabled us to make further reductions quickly," he said today.

"It's our fourth price reduction at the pump in the last three weeks."

The New Zealand dollar recently traded at US86.28c, its highest level since August 2011, when the currency hit a historic peak against the greenback since floating in 1985.

Crude oil prices, one of the key cost components in refined petroleum products, fell 1.4 per cent overnight to US$104.32 a barrel, its lowest level since July last year.

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