Fuel prices ease for the first time in two months

Media Release: 4 August 2009

PetrolWatch – July 2009

Fuel prices ease for the first time in two months

Petrol and diesel prices both fell during July, the first reductions since April, according to AA PetrolWatch. Petrol and diesel both dropped nine cents per litre during the month, although latterly petrol rose five cents. The price of a litre of 91 octane petrol began the month on $1.68 and ended on $1.64, while a litre of diesel fell from $1.11 to $1.02 in the main centres. 

AA PetrolWatch spokesperson Mark Stockdale says “the fall in retail prices was entirely due to a reduction in the international cost of crude oil and refined fuels, as our exchange rate remained stable during the month.” 

According to AA PetrolWatch, refined petrol costs fell as much as 14 per cent since pump prices last rose, and refined diesel 12 per cent, whilst the exchange rate lost no more than two cents in the same period.

“The pump price reductions accurately reflect falls in imported fuel costs, but it was disappointing the oil companies were a little slow in passing those savings onto motorists, prompting the AA to call for a price cut which subsequently occurred.”

“The decrease in the international price for oil and refined fuels reflects falling demand at the end of the North American summer driving season and confidence over reserves, although market prices have since risen again to offset some of the pump price reductions,” says Mr Stockdale.

For more information, go to: www.aa.co.nz/aapetrolwatch  
 
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