Motorists will be expecting further fuel price cuts with global prices of a barrel of oil falling below $US100 ($NZ153) for the first time since that mark was reached in early January.
Petrol prices peaked during July, reaching $2.19 a litre about the time oil hit its record price of $US147.27 on July 11, before starting to decline later in the month and drawing back to $2 by August as the barrel price eased toward $US100.
Yesterday, North Sea Brent futures for oil were trading at $US98.95, Dubai oil about $US95.85 and West Texas International was at $US100.92, according to Reuters.
Oil prices have fallen off with the recent strength in the US dollar, less demand from from European nations showing signs of recession, and following US oil inventories being in better shape than expected.
ASB chief economist Nick Tuffley said household spending on fuel increased 1% in July - but it was up 30% on the previous year.
"That's a large increase for household budgets to accommodate, so it is little wonder spending has been slashed elsewhere.
"One adjustment consumers have made is driving less," he said.
The declining petrol price had provided some lift to consumer confidence, but petrol remained expensive.
"With bad weather driving up food prices, consumers are not off the hook quite yet. A recovery in consumer spending may still be some way off, although October's tax cuts will certainly help," Mr Tuffley said, when commenting on retail trade data released yesterday.
