There has been a record run of price cuts in New Zealand, with about 18 over the past three months, including one yesterday, as a combination of falling global crude oil prices and a strong dollar works in motorists' favour.
Motorists and transport businesses across Otago were happy with the low prices but the Automobile Association says petrol stations should be passing more savings on to consumers.
An unscientific study of more than 10 petrol stations across Otago found prices ranged from 183.9c a litre at stations in Andersons Bay Rd in Dunedin to 203.9c at Wanaka stations.
In parts of the North Island, where low-cost petrol station Gull is present, prices were as low as 170.9c a litre.
AA senior policy analyst Mark Stockdale said Dunedin motorists were paying the same amount at the pump as most in the country, with only a small number of areas benefiting from Gull's presence.
But he did believe service stations should be passing on more savings.
''We don't think they are cutting prices as much as they could be and we know that because the margin - the difference between the retail price and the imported cost of fuel - is unusually high.''
Even so, the low prices could not come at a better time of year, with holidaymakers doing a lot of travelling.
''What that means is that Kiwis have got more money in their back pocket to spend on other things.''
Most motorists spoken to across Otago yesterday had noticed the price drop, with many saying they were driving more and others saying they had more to spend on other things.
Businesses were also benefiting, with H.
A. Foote Haulage director Mike Rogan saying it would help transport companies.
''It's obviously going to help, but it can go up just as quick as it goes down,'' Mr Rogan said.
The prices had not been low for long enough to have had a large impact on the company's bottom line, he said.
Beachlands Speedway promoter Mark Newall said the price drop was ''absolutely'' good for the sport.
''I run avgas in my car, and it's dropped 30c [a litre] in the last two or three months. It certainly makes it more affordable, plus also travel, so that you can go to other clubs and support them and race at other clubs.''
Earnscleugh Station owner Alistair Campbell said the price drop had a different impact on his farm than on other fuel consumers.
''Probably, as a merino wool-producing property, while cheaper to run our vehicles, it's also cheaper for our competitors to make synthetic materials.''
Fuel-price reductions would be detrimental because producing petroleum-based products such as nylon would be cheaper as well.
''I'm more concerned on it having an impact on the wool price.
''We don't do a lot of agricultural work so it's mainly just four-wheel-drive vehicles to get around the property as our main fuel usage, but if everybody who services us passed that reduction on, it would be great.''
The station had not brought any fuel at cheaper rates, as it had a 500-gallon tank on site and it had not been filled recently.
Petrol companies rejected the idea prices should be lower, saying motorists were benefiting from a highly competitive market.
Mobil spokeswoman Samantha Potts said it was ''absolutely a transparent market'' and it was ''up to customers to choose where to buy their fuel''.
In New Zealand, Mobil assessed the wholesale price of petrol daily, taking into account factors including global prices, local market conditions and freight costs, she said.
Jonathan Hill, of Z Energy, pointed to a New Zealand Institute of Economic Research report from August 2013 that said petrol prices ''reflect input costs, not gouging''. Air fares should fall to reflect plummeting oil and jet fuel prices but airlines are stalling on delivering cheaper fares, consumer advocates say.
Airlines say the issue is complex, but a major travel agency is frustrated airlines are not yet slashing average fares.
Flight Centre general manager Simon McKearne said domestic and international fares should fall by up to 10%, but airlines were delaying savings for consumers.
Taxi trips to the airport should also be cheaper,
Consumer NZ chief executive Sue Chetwin said.
''You could probably say that about any public transport, actually,'' she added.
She said air fares should be lower but was sceptical airlines would drop prices soon.
''I don't know whether I would say I'm expecting it, but I would think there was every reason airlines could drop their prices.''
Air New Zealand said it ''manages its exposure to fuel price fluctuations'' by locking in prices for future jet fuel purchases ahead of time.
''As a result, we are largely unaffected by recent changes in fuel prices,'' a spokeswoman said. - Additional reporting NZME.
