The price of diesel has fallen to under NZD 2 a litre, a move welcomed by road freight association Transporting New Zealand.
While the conflict in the Middle East looks to cease in the foreseeable future following the signing of a peace agreement, the cost of fuel is set to be impacted by recent developments. Many months after prices initially skyrocketed, the cost of diesel impacted the freight and transportation of essential products on the road.
Road freight association Transporting New Zealand has welcomed the price of diesel falling under NZD 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," said 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 added that 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 NZD 2 a litre is a sign of what’s possible at low-cost sites," Stockdale added.
Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Its members operate urban, rural and inter-regional commercial freight transport services throughout the country.
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