Petrol price drop

Bay drivers have been given a reason to smile as one petrol chain lowers its price of fuel.

Z petrol stations dropped the price of fuel yesterday by two cents a litre.

Automobile Association (AA) spokesman for petrol Mark Stockdale said the price drop reflected a firming exchange rate, despite commodity prices rising, until recently.

"The NZ dollar has climbed three cents against the US dollar since the last price cut on 31 August,'' he said.

"Meantime, the commodity price of petrol rose US$4/barrel, which was offset by the higher Kiwi dollar. However, petrol commodity prices have since fallen US$4/ barrel in the last two days.

"So with the stronger NZ dollar, the imported cost of petrol has fallen about three cents since 31 August.''

Diesel pump prices remain unchanged, even though the imported cost of diesel has also fallen 3 cents, Mr Stockdale said.

"Given that the importer margin on diesel is about the same as petrol, diesel prices should have also fallen two to three cents."