The national price for petrol has fallen below $1.95 a litre – the lowest level since mid-April.

BP dropped its prices this morning by two cents a litre to $1.93.

BP have dropped their fuel prices by two cents a litre.

The UK-owned company says it has dropped the price on all grades of fuel, with diesel now costing $1.119 a litre – the lowest national price for diesel since August.

BP spokeswoman Shelley Brady says further decreases in refined product costs had enabled the company to reduce prices.

'Cost of product and exchange rates remain fairly volatile,” explains Shelley, 'but we review our prices and the market every day and will continue to pass on savings to our customers whenever we can.”

The national price represents the prices charged at company sites in major centres.

However, some regions see lower prices because of discounting, while remote areas are often charged more, reports Stuff.

Z Energy has already matched the drop.

'A barrel of 91 [octane petrol] dropped a dollar overnight and a dollar the night before that. The FX [foreign exchange rate] has been pretty stable for the last week,” a spokesman for the Wellington-headquartered company says.