Three petrol companies in New Zealand dropped their retail fuel prices today, less than 24 hours after the government urged cuts.

BP, Caltex and Shell lowered petrol and diesel prices by 4 cents per liter today: 91 petrol is now 1.35 NZ dollars (78 US cents) per liter at most outlets and 95 octane is 1.40 NZ dollars per liter. Diesel is 1.07 NZ dollars per liter.

New Zealand Energy Minister Gerry Brownlee yesterday expressed concern that domestic fuel prices had not fallen further because of falling crude oil prices and a strengthening New Zealand dollar.

Shell was the first to move. The companies said they were responding to falling prices for refined petrol.

Brownlee said he was pleased with the move and he hoped there is room for more.