Petrol prices began falling yesterday following heightened calls in recent weeks by the Automobile Association for cuts.
BP cut its pump price by 2c a litre yesterday and ZEnergy said it was about to cut its price, with other companies expected to follow suit.
AA spokesman Mark Stockdale has been calling for cuts in recent weeks, saying the cost to buy fuel from overseas had been low, and yesterday's cuts were ''overdue''.
He credited the decline to the increasing strength of the New Zealand dollar, which delivered the ''unexpected boost'' to buying power, but he was reluctant to predict pricing during the next two-week to four-week period because of volatility.
Historically, fuel prices begin to go up at this time of year because of stockpiling of diesel in preparation for the European winter, Mr Stockdale said.
Following the cut, BP's 91 unleaded was 201.9c per litre, 95 unleaded was 210.9c and Ultimate Diesel 123.9c.
BP communications manager Shelley Brady said the New Zealand dollar had strengthened over several days, enabling the company to reduce prices nationally.
''We understand the impact petrol prices have on our customers, so we are happy to be able to pass through today's decrease,'' she said yesterday.
However, she noted volatility still existed in the market, particularly in terms of the cost of product and exchange rates, which would be monitored closely by BP.
''We don't know what shape the market will take in future, but we will always pass on savings to our customers whenever we can,'' she said.
