The good news continues for motorists with some petrol chains cutting a further three cents a litre from the price of unleaded petrol.

Z Energy and BP both announced the move this morning and are now charging $2.029c a litre for regular 91 fuel, down from a recent peak of $2.189 hit last month.

It was the fifth price cut for motorists in a month at Z and the fourth reduction from BP.

Shortly after, family-owned Gull cut the cost of unleaded 91 petrol to under $2 a litre. Gull is now charging $1.999 for 91 and $2.129 for its premium 98 octane petrol.

There have been a number of petrol price cuts over the past month, but high prices are still hurting consumers with a survey released last week showing over half of respondents are only using their cars for vital trips.

Z Energy spokesman Jonathan Hill said today's cut was enabled by continued decreases in global prices for refined petrol and a strengthening in the New Zealand dollar against the US currency.

BP managing director Matt Elliot said that prices had fallen as the worsening European debt crisis threatened to slow economic growth and reduce demand.

International volatility impacting the market also included speculation that the US Federal Reserve could take further steps to stimulate its economy and the Organisation of Petroleum Exporting Countries was calling for members to cut production, he said.

Rival petrol station chains are expected to match the price cut.

- © Fairfax NZ News

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