Photo: Marika Khabazi
Fuel prices are down 5 percent, despite earlier predictions they could top $3 a litre.
The price dips come as consumer confidence has taken a big hit in the latest Westpac survey, as the GDP figures are set to be released today.
Fuel prices are one source of relief for consumers. [https://www.rnz.co.nz/news/business/542256/no-clear-justification-higher-fuel-margins-could-limit-petrol-price-relief They have dropped by up to 5 percent over the past two months.
The average price for a litre of 91 petrol is $2.62, down 14 cents on last month while diesel is selling at $1.92 on average. It was up over $2 a month ago.
The price drops have occurred despite predictions at the start of the year that fuel prices could soar well past $3 a litre.
Gaspy spokesperson Mike Newton said there had been a sustained price drop since around 23 January.
All the factors driving prices up had reversed, such as international oil prices had dropped while the New Zealand dollar had strengthened against the US dollar.
"And all of this is to do with economic uncertainty basically - the decrease in demand worldwide for oil due to economic uncertainty which of course drops the price of oil.
"There's a huge amount of geopolitical issues at the moment which could see things go in any direction."
These included Israel's bombing and a new ground operation in Gaza, Russia's war in Ukraine and uncertainty over what US President Donald Trump would do with tariffs and trade wars, Newton said.
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