Petrol price drop reflects lowest oil prices in years
Annual petrol bills should be about $ 140 cheaper for motorists after the seventh consecutive cut to petrol prices on Monday.
Both petrol and diesel prices have hit a new low for 2014, dropping 2 cents a litre to their lowest point since April and May last year.
Nationally, a litre of 91-octane fell to 207.9c and diesel dropped to 140.9c a litre and as of yesterday morning most Tokoroa fuel stations had followed suit, matching octane-91 prices and, in some cases, even further dropping diesel - BP and Mobil stations sold diesel at 139.9c a litre.
BP spokesman Jonty Mills said it was the seventh consecutive petrol price drop in six weeks.
In late September motorists were paying 221.9c a litre for 91-octane petrol, and 151.9c a litre for diesel.
Automobile Association PetrolWatch spokesman Mark Stockdale said the 14 cent drop in petrol would translate to about $ 140 in petrol savings over the course of a year.
This was based on a typical medium-sized two litre car, he said, which the AA estimates uses about $ 2800 of petrol annually.
Mills said the cut was because of the continued downward trend in the cost of product on the international market.
Last week, oil prices were at their lowest in four years.
But Mills said it was not unusual for prices to drop at this time of the year with a change of seasons.
‘‘There is also stockpiling going on, which lessens demand and drives the price down. At the moment it’s good news for motorists as the pump price is at its lowest since April last year and we’re handing on these benefits as quickly as possible.’’
The AA put the price-drop down to falling refined fuel prices, on the back of falling oil prices.
The exchange rate had also firmed up a little.
SAVINGS COMING: Fuel prices are fallilng just in time for Christmas.