The price of fuel fell a total of 8 cents a litre during October, reducing petrol prices to their lowest level since April, and diesel to the lowest price since February 2015.
According to AA PetrolWatch, the price of 91 octane petrol at most outlets ended the month on $1.96 per litre, with diesel prices in many of the main centres falling to $1.18 per litre, although some service stations in the North Island are discounting prices below that.
“The price cuts were the result of a perfect combination of falling commodity prices and a rising exchange rate,” says AA PetrolWatch spokesperson Mark Stockdale.
“During October, a barrel of petrol fell about US$5 with diesel only down US$2, although diesel commodity prices had fallen in late September without any change in pump prices.
“At the same time, the New Zealand dollar increased 4 cents against the US dollar. Overall, that meant the imported cost of petrol fell nearly 9 cents in October while the cost of diesel fell a total of 8 cents since the last price increase in early September,” Mr Stockdale added.
According to AA PetrolWatch, the actual cost of fuel currently only makes up about a quarter of the pump price, with taxes making up nearly half of the retail price, and the remainder being fuel company costs.