Petrol prices may have been falling rapidly lately but motorists are warned the cuts are only temporary.
Petrol prices continue to fall at service stations, with family- owned Gull now charging $1.929 cents a litre for unleaded 91 fuel.
BP and Z Energy yesterday cut their price for 91 to $1.969c - the seventh round of petrol cuts since the price reached $2.189c in May.
This is the first time petrol prices have been below $2 a litre consistently since late 2010.
The drop in prices is due to a fall in refined fuel prices, but Brent crude bounced back yesterday to US$91.01 a barrel, from US$89.23 on Thursday.
AA PetrolWatch spokesman Mark Stockdale said the lower pump prices could not be guaranteed to last.
He suggested people consider moving closer to their workplace, get into the habit of using public transport, and walk, cycle or car- pool more.
"This is the most number of cuts we've had in the price of fuel in four years. Within the space of a month it has gone down 23c, which must be a record.
"Certainly what these price cuts are doing is giving motorists a reprieve from the higher fuel prices but it's not the beginning of lower prices forever.
"It's temporary and just gives us more time as motorists to prepare for higher petrol prices in the future," Mr Stockdale said.
Gull general manager Dave Bodger said its cheapest prices could be found at its Ngatea, Levin and Melville, south of Hamilton, unmanned sites where 91 was only $1.899 a litre.
"If people are after real savings, put some more air in your tyres and take the roof racks off your car," he said.
"Roof racks you don't need are just extra wind drag, 10 per cent of your fuel cost or, in today's terms, 19c a litre."
Although motorists are paying less to fill up their cars, the importer margins for service stations rose to a 12-month high last week.
Since mid-March commodity prices have fallen 26c a litre at the current exchange rate and the major petrol station chains in New Zealand had cut 23c from the price of petrol, putting the importer margin at the top of the normal range.
Mr Stockdale said: "If there are any more commodity price reductions or the dollar goes up any further there will be more cuts in petrol prices. The AA is not ruling out yet another price cut."
- © Fairfax NZ News