Petrol prices across New Zealand continue to fall to near record-breaking lows as one of the country's leading oil companies cuts prices further. Z Energy has dropped the price of its 91 octane product by 3 cents, bringing the cost of a litre to under $2 for the first time since April 2015.
The figures for August, collated by the AA as part of its PriceWatch data, suggested that the cost of oil to the fuel companies is now lower than previously thought, and those savings are being passed through to the pumps.
Naturally, this will come as music to the ears of fleet managers who regularly send out drivers across Kiwi roads. Moreover, any purchases made using a fuel card throughout August appear as though they will present even better value than normal.
Demand for fuel from consumers appears to be staying at steady levels, another reason why the price has dropped. Typically, in the aftermath of a price cut, there's a rush to the pumps as car, van and truck drivers try to make the most of changes.
This can lead to fluctuations as the demand drives the price back up. However, that doesn't appear to be the case in August. A Z Energy spokesperson even went as far to say that the demand for diesel in particular had been 'pretty soft' according to stuff.co.nz.
For the time being at least, it appears as though fuel prices may stay relatively low for the foreseeable future, due in part to the supply of oil outstripping demand. In fact, better drilling technologies enable oil companies to pump the black stuff at record levels, creating a market that continues to see the price of crude fall.
Here in New Zealand, that's felt at the pumps. Fortunately, for businesses and personal users alike, getting the most value from each fill-up may remain easy for the time being.