Petrol prices drop below $2
12:28PM Friday August 15, 2008

Petrol prices dropped below the $2 mark last night with Shell leading the charge, dropping 3 cents a litre.

Diesel has also fallen by 8 cents to 171.9 cents in what spokeswoman Jackie Maitland has described as possibly the biggest drop in four years.

"We have been reviewing prices daily, and despite a steady fall in the Kiwi dollar over the last week, we have seen enough drop in the price of crude to be able to pass on these savings to Kiwi motorists," Ms Maitland said.

Caltex followed suit at 8pm last night.

Spokeswoman Sharon Buckland said the international price of diesel had been going up faster than the price of petrol and has now dropped faster too.

She said there has been speculation that with China freezing parts of its industrial centres during the Olympics, the international demand for diesel has dropped.

When asked if the price of diesel could go back up once the Olympics were over, Ms Buckland said she could not comment.

Mobil has also dropped prices. Spokesman Alan Bailey said the price of crude had been dropping but the weakening Kiwi dollar had counterbalanced that.

More here.