Fuel prices are dropping by a considerable amount this week, which comes alongside the Government announcement to extend the fuel excise into January 2023.

According to the mobile application Gaspy, 91 petrol is as low as $2.66 per litre on at Gull on Hewletts Road, a welcome surprise to many after prices were averaging $3 per litre earlier this year.

When asked what has caused the drop in prices, a Gull spokesperson says that retail prices easing off is a result of raw material prices softening.

'Contributing factors to the historical increase in prices haven't significantly changed, such as Covid-19, the Ukraine war and supply constraints, but we have seen significant volatility in material costs,” says the Gull spokesperson.

'This simply may be more of the volatility playing out.”

The Gull spokesperson says ‘it is impossible to say with certainty whether prices will continue to fall.'

'We will be keeping a close watch on price movements and ensure we continue to provide an awesome price to our customers.”

They also say that they are pleased with the Government's decision to extend the fuel excise.

'It's a great help for our customers.”

Although the extension of the fuel cut comes as a relief to Tauranga businesses that utilise fuel, Pluto Juice Bar owner Victoria Thomas says the petrol pinch is still definitely being felt.

Pluto Juice Bar owner Victoria Thomas. Photo: Bob Tulloch/SunLive.

'Fuel has been a concern this year,” says Victoria.

'We don't pass on the added cost to our customers. We still do our free lunchtime delivery service, but it affects us in other ways. Our cost of goods have gone up as a result of the transportation of them.”

Victoria says that the delivery service at Pluto makes up for about five to ten per cent of sales.

'It is still really worth it for us to do deliveries in the CBD, as a lot of our customers biggest struggle is trying to find a car park anywhere near us. So it is our way of alleviating that pain point.”

First Call Construction owner Sam Meichtry says the high petrol prices this year have changed his operation.

'I fill my van up a few times a week. I think the Government extending the cut is good,” says Sam.

'I think there needs to be some more regulation. Some companies are buying barrels and a few months down the track when prices rise, they can mark up those barrels, when they were purchased for less. It feels like they make up the figures as they go.”

'But at the end of the day, it's just a cost you have to wear. I have to make my long distance clients aware that there will be an extra cost for travel at the moment.

"I still go to out to Te Puke and Katikati, but I think it's only fair to the client to be completely transparent with them.”