Petrol prices drop for third time in a week
Tumbling fuel prices are providing welcome relief for consumers, with petrol prices dropping for the third time in a week.
The latest 3 cent price reduction, led by BP, took the price of regular petrol to $2.059 at most petrol stations in major centres.
Petrol prices are down 14c or 6 per cent in three weeks, after sitting at $2.20 for more than two months.
The pump price is now at the lowest level since last August.
While fuel companies said the drops were driven by fluctuating international product prices and the exchange rate, motorists can expect immediate savings.
Yesterday, AA spokesman Mark Stockdale said the latest cuts had trimmed margins back to normal levels.
"They're at the level that we think they should be."
Prices have been dropping because the price of crude oil - the ultimate driver of the pump price - has fallen amid fears a new financial crisis in Europe will cause a global recession, which would cut demand.
BP New Zealand's managing director Matt Elliott said although the cost of refined fuel was still volatile, "international product prices have generally continued to trend downwards.
"We're passing on these benefits as soon as we're able."
The Dominion Post