Fuel companies should deliver Christmas cheer with price cut

The AA says fuel prices should be falling right now, which would be good news for Kiwis as summer holidays begin.

AA fuel spokesperson Terry Collins says international oil prices have fallen and flattened out in the final months of 2025 and this should mean some relief at the pump.

“We have been watching the international price of oil drop yet there seems to be a bit of a lag in the prices at the pump coming down for motorists.

“Our monitoring shows that a price drop is well overdue and fuel companies should be lowering their pump prices now as Kiwi begin the busiest driving period of the year.”

Terry says cost of living pressures and other economic factors mean a lot of people are doing it tough and lower prices at the pump would be a welcome relief. 

“Lower fuel costs would be great for summer, especially with more people out on the road – it will leave New Zealanders a little extra in their holiday budgets to enjoy themselves.

“We will continue to keep an eye on prices over the holiday period to ensure New Zealanders aren’t getting burned by the rocket and feather effect.”

The rocket and feather effect is an economic phenomenon where prices are quick to go up when production costs increase but fall slowly when the costs come back down.

The New Zealand Automobile Association is an incorporated society with more than 1.1 million Personal Members. It represents the interests of road users who collectively pay more than $2 billion in taxes each year through fuels excise, road user charges and GST.