Petrol Prices drop for first time in 8 months

Media Release: 2 June 2011

PetrolWatch – May 2011

Prices drop for first time in 8 months

May was a month of extreme contrasts, with petrol prices hitting their highest ever level and then falling for the first time since August 2010.

“May began ominously with petrol prices reaching an all-time record high of $2.22 per litre, but within days prices began tumbling due to lower commodity prices and a rising exchange rate,” says AA PetrolWatch spokesperson Mark Stockdale.

After 91 octane petrol rose to $2.22 per litre in the main centres in early May, prices fell four times during the month to end on $2.06 per litre. The price of diesel also fell 16 cents to $1.48 per litre at most outlets by month end.

“Finally there’s some good news for Kiwi motorists with this being the first drop in pump prices after eight long months. Prices had been continually going up and up with seemingly no end in sight, and at last we’ve seen prices come down,” said Mr Stockdale.

According to AA PetrolWatch, the price of oil dropped US$17 a barrel or 13 per cent during May. This translated into a 13 cent per litre reduction in the imported cost of refined fuel, although the fuel companies reduced prices by 16 cents per litre.

“Competition amongst fuel companies seems to have heated up during May, with several swift price cuts for motorists and a lower importer margin than usual,” said Mr Stockdale.

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

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