AUCKLANDERS WAKE TO LOWER FUEL PRICES
Aucklanders have woken to cheaper petrol prices - but motorists are being told they could save the most money simply by shopping around.
From Monday, the 11.5c per litre regional fuel tax no longer applies.
On Monday morning, the price of 91 dropped from $2.92 to $2.80.9 - the same price as in Whangarei. At the Z station in Ponsonby, 95 was $3.11.9 on Sunday - according to Gaspy - and on Monday it was $2.99.9.
The tax was meant to be in place for 10 years to help fund Auckland infrastructure.
AA principal policy adviser Terry Collins said he had been confident that prices would drop between Sunday and Monday. He said the reprieve could be shortlived though, because fuel prices were likely to pick up again on the back of rebounding oil prices.
Aucklanders wake up to an 11.5-cent fuel price drop as tax ends (4 min 19 sec)
"In June, OPEC announced some of its voluntary [production] cuts may stop. The term 'may' was overlooked, and it has reiterated it only said may and it was not confirmation - prices quickly rebounded."
He said a more important factor for motorists than the fuel tax was the price variation within Auckland.
"You can see variation of as much as 50c. If you save 11.5c on a 60-litre fuel then that's $6.90. If you save 50c, that's $30. That's a nearly five-times factor increase. The combination of no regional fuel tax and shopping around makes it worthwhile to do so."
He said it was only when motorists shopped around for the best price that the industry would be incentivised to cut prices.
The areas where fuel was cheaper were where there was a degree of competition, he said.
"It's putting pressure on companies to lower the price."
Simon Parham, chief executive of Waitomo, said his firm had dropped prices by 12c a litre at 5pm on Sunday.
"We should see everyone take those taxes off today," he told RNZ's First Up.
But he said fuel prices would fluctuate due to geopolitical factors, OPEC movements and things like the Emissions Trading Scheme.
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2024-06-30T19:20:32Z dg43tfdfdgfd
