Petrol prices cut again

Petrol prices have been cut another two cents a litre, as Brent crude oil tumbled to fresh lows under US$50 a barrel on world markets.

But the Automobile Association still thinks there is scope for fuel prices to come down another 2c to 3c a litre.

Petrol prices have now fallen 7c a litre in the past month, while diesel is down 10c a litre, leaving more cash into drivers’ pockets.

Z Energy trimmed 91 octane to about $2.05 a litre, with premium down to $2.14. Diesel was down to $1.24.

Pump prices could have fallen even more, but sliding world fuel prices have been partly offset by a weaker New Zealand dollar.

Lower fuel prices and falling mortgage interest rates will provide relief for consumers facing a slowing economy and a more uncertain job market. A big fall in fuel prices lifts households’ buying power and lowers the costs of doing business.

In March, consumer confidence improved as petrol prices fell, mortgage rates fell and house prices rose and the same set of factors is repeating now, despite the slump in the dairy payout announced yesterday. Falling petrol prices will also keep a lid on already low annual inflation.

Pump prices were more than $2.20 a litre in October last year and slumped close to $1.70 in January this year before rebounding to $2.22 in the middle of June. That means prices are down about 17c from the recent peak just a couple of months ago. Z Energy said the latest cut was driven by a fall in the price of refined petrol and diesel on the international market.