Reduced fuel prices are not likely to be passed on to customers of transport service providers, those in the industry say.
In the past month, New Zealand petrol and diesel prices have fallen in line with falling global oil costs and a strengthening New Zealand dollar.
In main centres yesterday, 91 octane petrol retailed for 199.9c per litre, the first time it has fallen below $2 in 10 months.
The price drop meant savings at the pump, but not at bus and taxi stands or for courier services.
Murray Alcock, a director of Dunedin Taxis Ltd and the New Zealand Taxi Federation's Otago representative, said most drivers absorbed rising fuel costs during the past 12 months and would not change fees in response to recent decreases.
Mr Alcock said changing taxi fees involved replacing advertising and signage as well as re-calibrating metering machines, which could be a "horrendous" expense.
"We monitor fuel prices quite regularly and if they dropped significantly we would look seriously at dropping prices, but increases we have had in the past 12 months have not been passed on to customers - drivers have absorbed them themselves," he said.
The constant fluctuation of fuel prices meant if drivers were to change fees accordingly it would be an "endless process", he said.
"Overall the drivers, owners and operators are businessmen as well," he said.
Mr Alcock said the recent price drop reflected changes in the exchange rate and costs of shipping and refining as well as a "settling down" of the economic situation in Europe.
Otago Regional Council passenger transport officer Bruce Ramsay said bus fares were reviewed once a year as part of the annual plan process.
He said bus fares were due to increase by 5% from July 1, but it was irrespective of recent petrol prices.
"We take fuel costs into consideration when we do the annual review, which is open to public consultation," he said.
Fastway Couriers Otago and Southland franchise owner Buks Lundt, of Dunedin, said changes in fuel prices were absorbed by the company, which did not impose a fuel surcharge on customers.
"Whatever you pay for our service, that's what you pay whether [fuel costs] go up or down. We absorb changes whatever they are," he said.
Automobile Association Otago acting chairman Jeff Donaldson said the organisation had no control over transport service costs, but monitored fuel prices to ensure they were consistent throughout New Zealand.
He was confident costs were down evenly across Otago, in keeping with the rest of the country.
