Fuel's cost has begun to decline with the strengthening New Zealand dollar again cushioning international prices.
Z Energy yesterday cut the price of both petrol and diesel at its pumps by 3c each per litre, with regular 91 octane at $2.21.9, premium at $2.29.9 and diesel at $1.56.9.
A Z spokeswoman said with the kiwi having strengthened, and combined with the lower cost of refined petrol and diesel on international markets, Z was able to pass on savings.
AA petrolwatch spokesman Mark Stockdale said monitoring during August of the imported costs of fuel showed the fuel companies had taken ''a major hit'' on their profit margin, and the outlook did not look good at the time, as oil prices were then at their highest level since February ''It's fair to say concerns about a US invasion of Syria have led to a spike in commodity prices,'' Mr Stockdale said.
In the main crude oil markets, the New York benchmark contract last week shot up to $US110.53 ($NZ136.47) a barrel due to tensions over Syria - its highest level since May 2011, AFP reported. Oil prices had since fallen sharply, for a second day running.
On Tuesday, the US benchmark West Texas Intermediate oil for October delivery dropped $US2.13 to $US107.39 a barrel on the New York Mercantile Exchange, while Europe's benchmark Brent North Sea crude for October shed $US2.47, closing at $US111.25 a barrel.
