Petrol prices down even more. But why are dependent products not cheaper?

Get ready to pay a dollar sixty-something a liter, or even a dollar fifty-something at highly discounted locations.  Diesel?  Under a buck.

Petrol and diesel prices have been cut by another 2 cents.

It’s the fourth price cut this week – and the 19th since the start of October – and some stations are now selling diesel for under $1 per litre.

Diesel prices haven’t been this low since 2009 and motorists are lapping the prices up.

There are stations in the Bay of Plenty selling diesel for under 94 cents a litre, as world oil prices plunge.

The fall in the price of oil is going to have impacts beyond just the pumps, it’s going to have an effect on interest rates here in New Zealand.

That’s because lower fuel prices will reduce inflation and that means less reason for the Reserve Bank to hike interest rates.

“I think from the Reserve Bank’s perspective they are likely to stay where they are for a very long time,” says BNZ economist Stephen Toplis.

The lower oil prices will make the Reserve Bank’s job more difficult.  Usually if inflation were easing it would cut rates, but it can’t do that with house prices rising in Auckland and Christchurch.

“In New Zealand’s case the economy is ticking along quite nicely, the housing market looks like it is going to go gang busters again – the last thing you want to do is lower interest rates. The flip side of that is there is no way you can increase them when you have got no inflation,” says Mr Toplis.

Something else that might not change for a while is air fares – despite aviation fuel falling around 45 percent in price.

Air New Zealand says it hedges the fuel price – meaning it pays a fixed amount in advance to avoid any nasty surprises.

What other products and services should be under pressure for price reductions?

It appears everyone is enjoying the extra money in the pocket.

– 3 News

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.