Four oil companies dropped the retail price of petrol and diesel on Friday.
BP Oil, Z Energy, Mobil and Caltex have lowered prices for 91 and 95 unleaded petrol by 3 cents a litre and diesel by 4 cents a litre.
A litre of BP 91 petrol is now $2.09.9 and 95 is $2.17.9. BP diesel is $1.50.9 per litre.
BP said the New Zealand dollar has strengthened and there has been a steady decline in the cost of refined fuel.
Rising inflation in China has led to a drop in demand globally, which is reflected in a drop in oil prices in many countries.
Gull, which runs 53 petrol stations in the North Island, says its prices are below those the major petrol stations have announced and is about $2 per litre.
The Automobile Association said the retail price of petrol is about right, but believes oil companies can afford to drop the price of diesel by another 2c.
