Punters pleased with price at pump


Seven price cuts in petrol mean motorists are going further on their dollar and putting in more at the pump than they would before.

This time last year, petrol prices were 10 percent (172.0 cents per litre) cheaper than they are now – but the exchange rate was also stronger.

Diesel on the other hand hasn't been as low as its current price since 2007.

Diesel is used as a heating fuel in the Northern Hemisphere and "it's apparently a mild winter there which is seeing soft demand and strong supply, leading to lower refined diesel prices," says Z communications manager Jonathon Hill.

Mr Hill says there are a couple of key factors that impact the rise and fall of prices at the pumps - the cost of crude oil or refined petrol and diesel on the international oil market, government taxes and levies, operation costs, and the profit margin.

"The cost of a barrel of crude oil the international market changes all the time, and at the moment the price per barrel is lower," he says.

That's good news for the public and it could continue, with Mr Hill saying it isn't expected to rise anytime soon.

New York Times business correspondent, Clifford Krauss, also said oil prices are not likely to recover anytime soon.

"Demand for fuels is recovering in some countries, and that could help crude prices recover in the next year or two."

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