The price of 91 octane petrol fell to $2.05 per litre in the main centres, while diesel fell 10 cents per litre to $1.42 a litre at most service stations, the lowest price since July 2012.
“Since mid-March, petrol prices have fallen 16 cents per litre, and diesel 13 cents. In all, fuel prices have fallen on seven consecutive occasions, the most number of sustained drops since June 2012,” says AA PetrolWatch spokesperson Mark Stockdale.
“However, the AA’s monitoring of commodity prices shows that since the last retail price increase in mid-February, the imported cost of petrol has fallen nearly 19 cents per litre, and diesel 16 cents. That means fuel companies have not passed all of the lower costs onto motorists, although some service stations have discounted prices below $2 a litre.”
This time last year we were paying $2.20 a litre for 91 petrol and $1.57 a litre for diesel, meaning motorists buying 40 litres of petrol today will be saving about $6 a time, or about $158 a year for a typical 2-litre car.
“International fuel prices have been consistently falling due to lower global demand, and increased supply as refinery production comes back after shutting down for maintenance,” Mr Stockdale said.
“Although in the last few days oil prices have risen slightly, at current trends there is a good chance the price of 91 octane petrol will fall below $2 a litre soon, the first time since June and July last year,” Mr Stockdale added.
The value of our dollar also plays a role in the price of fuel.
The upside of the higher exchange rate which makes export prices more expensive is that it makes imports cheaper.
LabourGreen say they’ll bring the value of the dollar down.
Bigger economies than ours have tried to do that with no success and at a very high cost.
If they did succeed it would immediately devalue everyone’s purchasing power as the cost of essential imports, including fuel, would rise.