Fuel prices at lowest level in 18 months

Media Release: 4 July 2012

PetrolWatch – June 2012

Fuel prices at lowest level in 18 months

The price of petrol fell six times during June, the most consecutive price cuts since 2008. Petrol prices fell a total of 19 cents during the month, down to $1.97 per litre for 91 octane in the main centres, the first time prices have dipped below $2 per litre since August 2011. By comparison, the price of diesel fell five times, and a total of 13 cents, to end the month on $1.41 per litre at most outlets, the lowest price since August 2011.

“Fuel prices have been dropping thick and fast in the last month, thanks to ongoing falls in global commodity prices and a stronger kiwi dollar,” says AA PetrolWatch spokesperson Mark Stockdale

“Motorists haven’t experienced such large price cuts since 2008, and like oil, the price of petrol is now at its lowest level since December 2010.

“The run of price cuts is a welcome reprieve from near-record fuel prices, and comes just in time for the school holidays. The AA calculates the average motorist will be saving about $9 per fill of 40 litres compared to just over a month ago,” Mr Stockdale said.

“In spite of the price cuts, the AA’s monitoring shows the importer margin – the difference between retail price and costs and taxes – has been well above average since commodity prices began falling in March, meaning the reductions had not been fully passed onto motorists,” Mr Stockdale added.

According to AA PetrolWatch, by the end of June the imported cost of fuel had fallen 26 cents per litre since mid-March, while retail prices were down 23 cents per litre. At the same time diesel commodity prices had fallen 19 cents per litre, with retail prices dropping 16 cents per litre.

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

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