A strengthening Kiwi dollar and small reductions in commodity prices have led to another three cent cut in pump prices.

Petrol giant BP led the price cut yesterday, says AA spokesperson Mark Stockdale.

Petrol prices have been cut for the second time this month.

'Commodity prices, exchange rates and retails prices are all about where they were this time last year, even though we're paying more fuel tax today.”

The price for 91 octane is currently sitting around $2.18 with 95 octane about $2.26. The price of diesel is $1.53.

Mark says the second price reduction this month follows on from a three cent reduction on September 11 when were $2.21 for 91 octane, $2.29 for 95 octane and $1.56 for diesel.

'The fuel companies have been prompt to pass on this saving, but commodity prices are still volatile in light of the Syrian crisis and could just easily rise,” said Mark when he reviewed prices on September 11.

'This time last year we were paying $2.20/litre for 91 octane and exactly the same price for diesel – while the exchange rate was slightly higher and taxes lower.”