Petrol drops 2c a litre

02:06, Apr 03 2014

A "long-overdue" fall in petrol prices has resulted in fuel grades dropping 2 cents a litre this morning.

Z Energy dropped pump prices this morning, meaning a litre of 91-octane was now $2.139 and diesel $1.459.

It was the first change in prices since mid-March.

But AA PetrolWatch spokesman Mark Stockdale said "the reduction was long overdue".

The recent higher exchange rate had meant there had been scope for a 2 cent to 3c a litre cut for most of the past fortnight.

He said last week the consistently high New Zealand dollar and falling commodity prices meant it was time for fuel companies to drop prices.

The New Zealand dollar was trading at about US85.7c this morning, having reached a high of US87c earlier in the week.

"Last time petrol margins, retail prices less costs, were this high, pump prices fell," Stockdale said.

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Fairfax Media