The price of fuel fell a total of 8 cents a litre during October, reducing diesel to the lowest price since February 2015.
According to AA PetrolWatch, diesel prices in many of the main centres fell 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 to the US dollar. The cost of diesel fell a total of 8 cents since the last price increase in early September,” says Stockdale.
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 costs from the fuel companies.
