Fuel prices are at their lowest levels in more than six months, due to falling commodity prices and a strengthening New Zealand dollar.
Fuel prices fell a total of 8c a litre during October, leaving petrol prices at their lowest level since April and diesel at its lowest price since February, AA PetrolWatch spokesman Mark Stockdale said this week, crediting the ''perfect combination'' of falling commodity prices and a rising exchange rate.
The consistent downward pressure on fuel prices is beginning to show up positively on the balance sheets in several industrial sectors, including transport, logistics, agriculture and mining, according to analysts.
The actual cost of the fuel at present makes up only about 25% of the pump price. Taxes account for nearly 50% of the retail price and the remaining 25% is fuel company costs.
The price of 91-octane petrol at most outlets ended October on $1.96 per litre. Diesel in many of the main centres fell to $1.18 per litre, although some North Island service stations were discounting prices even lower, Mr Stockdale said.
During October the New Zealand dollar increased 4c against the US dollar.
''Overall, that meant the imported cost of petrol fell nearly 9c in October, while the cost of diesel fell a total of 8c, since the last price increase in early September,'' Mr Stockdale said.
