Diesel prices fall but still scope to fall further

Road freight association Transporting New Zealand is welcoming the price of diesel falling under $2 a litre at some truck stops, the lowest price since the beginning of March before the war with Iran began.

“Fuel prices have been steadily falling on the back of lower commodity prices which are reacting to positive signs in the Middle East and now news of a signed peace agreement,” says Transporting New Zealand Policy and Advocacy Advisor Mark Stockdale

“The low diesel price at some truck stops is a welcome sign that prices might finally be coming back to normal, but diesel prices at most service stations are much higher. Fuel company margins on diesel are bigger than for petrol and there is scope for diesel retail prices to fall even further after a drop of around 30 cents a litre last week,” Stockdale says.

“Fuel company diesel margins are still the highest they’ve been since April, and nearly double what they were before the conflict in the Middle East began, so not all of the fall in commodity prices is being passed on at the pump. We should see diesel pump prices fall even further, and the truck stop price of under $2 a litre is a sign of what’s possible at low-cost sites,” Stockdale added.