4 Dec 2008

AA predicts return to holiday road trips

8:02 pm on 4 December 2008

The Automobile Association predicts a return to the traditional Kiwi Christmas holiday this year as world oil prices continue their downward trend.

The AA expects retail fuel prices to remain low through to the end of summer.

It says high prices during the holiday season last year meant people stayed closer to home.

But it says New Zealanders will be taking advantage of lower petrol prices and roads will be busier this Christmas.

Oill companies cut retail prices by 5 cents a litre at the beginning of last week and the AA predicts another price cut is due soon.

It says oil companies are passing on reductions on the world market very promptly, outpacing the fall in the dollar.

Retail petrol prices fell six times, by a total of 29c during November, and the AA says the average motorist is saving $45 a fill.