Fuel prices at the pump continue to slide as the global price of oil touches a three-year low.
Motorists are set to benefit from the price plunge after BP yesterday cut its petrol prices 2c a litre, with 95 octane down to $2.20 and 91 at $2.11.
If not for the strengthening US dollar, and weakening New Zealand dollar, motorists could be paying closer to $2 a litre, according to AA PetrolWatch spokesman Mark Stockdale.
Oil prices in the US on Tuesday fell more than 2% after Saudi Arabia cut its export prices to the US, threatening to deepen a global supply glut which has driven prices down 30% since June.
Petrol and diesel prices fell four times, or by a total 8c per litre, during October.
US oil crude futures settled down $US1.59 at $US77.19 a barrel after reaching the lowest intraday price since October 2011, while the price of North Sea Brent crude, for next-month delivery, settled down $US1.96 at $US82.82, after touching its lowest point since October 2010, Reuters reported.
Mr Stockdale said if the exchange rate had not fallen more than 8c since July, ''we'd be knocking on the door of paying just $2 per litre''.
BP spokesman Jonty Mills said petroleum refining costs continued to decline in October.
Mr Stockdale said in late October monitoring of the fuel company importer margin suggested room to cut petrol prices a further 2c, and diesel by 4c.
