New Zealanders burnt by low petrol prices - AA

New Zealand's petrol prices have dropped significantly in recent weeks, but the Automobile Association (AA) says consumers shouldn't be celebrating just yet.

Prices have dropped by up to 16 percent per litre in just the last month alone.

Maybe it's a coincidence, but the fall comes ahead of the release of a Government report into fuel pricing.

The Fuel Market Financial Performance Study, conducted by the Ministry of Business, Innovation and Employment, is expected to be completed by the end of June.

It will examine whether fuel companies are increasing their prices in areas with less competition.

The AA suggests that the fuel companies currently want to keep their margins low to undermine the findings of the report.

But the fuel companies reject the AA's claim, saying the price drop has been caused by the strong dollar and the low price of unrefined fuel.