The Energy Minister says she's expecting petrol prices to continue to drop after "massive movement" in the past 48 hours, and that she will be keeping watch to make sure savings trickle down to consumers at the pump.
International fuel prices have plunged in recent days, on the back of uncertainty prompted by the Covid-19 coronavirus.
In New Zealand, Z and Caltex petrol retailers are dropping the price of gas by seven cents a litre today. The move comes on top of a six cents a litre drop yesterday.
But to make sure they stick to their word, Energy Minister Megan Woods said she has spoken to providers and will keep watch.
"Certainly I will be keeping a very watchful eye to check that motorists are seeing the same downward movement on prices that they see upward movement when the price of crude goes up," she told media today.
Crude oil prices fell by 30 per cent, the biggest one-day drop in nearly 30 years.
"We know how quickly prices going up of crude are passed on to motorists so I'll be looking to see that those savings are also passed on to motorists.
"This is a very timely test while we're seeing how competitive the fuel market is in New Zealand."
Last month, the Government announced it was bringing in new rules to promote competition in the fuel industry, with the hope it will lower the price at the pump.
The response came after a Commerce Commission report which found New Zealanders were paying too much for petrol.
Officials say the proposed law change could result in savings of 10 cents per litre.
The year-long study found the difference in regional prices reflected the level of local competition, discount schemes avoided direct competition and premium petrol prices have increased faster than regular prices.
Today, Ms Woods said, "all the work that we're doing that's come out of the fuel market study, the work around transparency, terminal gate pricing, working to make sure that we have a more competitive market - these are all things that will ensure the consumers enjoy those savings not just the petrol companies."
Legislation will be passed this year that will ensure those rules are met, Ms Woods said today.
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