Fuel prices lowest in nearly five years

Fuel prices lowest in nearly five years

After a run of 22 straight price cuts in a row since October, petrol prices fell to their lowest levels since May 2010, and diesel to prices not seen since 2009.

Petrol prices fell 17 cents per litre in the first half of January, with the price of 91 octane ending the month on $1.73 per litre at most outlets, although many service stations in parts of the North Island were discounting prices below this. Diesel fell 15 cents per litre in January to $1.07 per litre by month end in the main centres.

“Since early October, the price of petrol fell 49 cents per litre, and diesel 45 cents per litre, the biggest price cuts on record since 2008,” says AA PetrolWatch spokesperson Mark Stockdale.

“For someone filling a typical car, that represents a saving of over $20 each time, and a reduction in their annual fuel bill of more than $500 a year.”

According to AA PetrolWatch, commodity prices fell 44 cents per litre between October and mid-January.

“The international commodity price for petrol fell 47% in the last four months, and as a result, the commodity price component of the retail price has also fallen by nearly half. Some motorists may be surprised to learn that the commodity price now makes up just over a quarter of the retail price of petrol, with taxes making up over half.

“Even if the price of oil fell to just $1 a barrel, we’d still be paying about $1.25 per litre for petrol, thanks mostly to taxes which fund our transport system,” Mr Stockdale said.

Fuel prices have subsequently risen for the first time in four months, with all fuels up four cents per litre. Commodity prices have increased for the first time since August, while the exchange rate has fallen by over five cents to its lowest level since 2010.

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

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