Road users rejoice! Average fuel prices across New Zealand have been reported to be at their cheapest on average for the last 12 months. As crude oil prices drop to their lowest point in a decade, fuel providers have been passing the savings on to the users.
Fuel prices have been fluctuating between $1.70/litre to $1.80/litre for the past few weeks, presenting an excellent opportunity for drivers to get the most bang for their buck in February.
An unusual discrepancy
Fuel prices are generally considered to be mostly based on the price of crude oil at the time, which has also hit one of the lowest price points in recent history. However, while a level of competitive pricing has always been apparent across different providers, some road users have been reporting large discrepancies in across stations in the same geographic area.
Radio New Zealand reports that a gas station just outside Sylvia Park offered a price of $1.54/litre, a full 20 cents below the average at the time. Meanwhile, a different station in Remuera was charging $1.77/litre. With fuel prices so low, why are we seeing such a huge discrepancy?
AA spokesperson Mark Stockdale told Radio New Zealand on February 13 that new biofuel offerings could also be helping to drive competition, citing fuel provider Gull as an example.
"They are a cheaper fuel brand, they have lower costs and also pay less tax on premium petrol, because it's got ethanol in it," he said.
"Other fuel companies that are operating in the same areas as Gull, they feel they need to match Gull's prices, because if they don't match Gull's prices, all of their consumers will go to the Gull's service stations."
There are still plenty of opportunities to get good deals on fuel from other gas stations, assuming they have a fuel card. Feeling the need to get a grip on your fleet's fuel efficiency? Talk to the team at Card Smart to get petrol deals all year round.