With crude oil prices continuing to fall, experts predict fuel prices could also drop in the near future.
Brent crude oil dropped from US$91 to US$56.42 a barrel on Friday on the back of continued concerns about a global supply glut.
Motoring experts believe fuel prices could continue to fall.
Earlier in the day it had fallen to a post-2009 low of US$55.48, only half its average price of about US$110 a barrel between 2011 and 2013.
The drop in crude oil prices has seen the cost of petrol and diesel fall by more than 20c per litre since October.
In a report by Fairfax, CMC Markets New Zealand chief executive Chris Smith says the price of crude oil was likely to fall further, although it could begin to rebound later in the year.
'In general, a lower price of oil is good for businesses and consumers,” says Chris
'What's concerning is the political side of things that come with such a large decline.”
He added the prospect of the US ending an export ban on US-produced oil could also put pressure on prices.
'If they start to become competitive in the export space it will cause a few problems for Opec and Russia,” says Chris.
7 comments
Oil Compnay profits
Posted on 06-01-2015 16:35 | By YOGI BEAR
The benefit will not be passed on, all that will happen is a few penny's will be thrown onward to the public, the rest will add to the already giga-normous profits they already have.
Tauranga Expensive.
Posted on 06-01-2015 18:00 | By Robert
today Rotorua 1.73.9 Tga 1.89
But
Posted on 06-01-2015 19:17 | By FunandGames
as soon as there is a hint of price increase watch the pump price sky rocket
$56
Posted on 06-01-2015 20:50 | By Capt_Kaveman
well if it stays there then the pump should be down in the range of $1.15/$1.30 as it stands pump prices should be no higher than $1.75 some what lower than they are now, so yeah YB is right again NZ stations a rorting the system
Let's not forget
Posted on 07-01-2015 12:26 | By The author of this comment has been removed.
With the rise of fuel cost many companies upped prices and blamed their increases on transport costs. Now these costs have reduced, prices are still static and greater profits are being made.
LET'S NOT FORGET
Posted on 07-01-2015 13:12 | By s83cruiser
the gubmints rort with the taxes on the taxes. Be nice if they were relaxed a bit to reflect the changes in the market. More likely to go up knowing them.
Wholesale RORT
Posted on 07-01-2015 16:30 | By R1Squid
By all retail outlets of fuel. Raw material is 50% less than it was 6 months ago. Banks pass on their wholesale interest costs, why not other industries. And I still think that net interest income of 3 to 5 percent by Banking Institutions is obscene
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