A global agreement to increase the supply of oil should cause prices to eventually drop in New Zealand

The world's oil producing nations OPEC have agreed to pump one million more barrels a day, increasing global supply by one percent.

Gull's general manager, Dave Bodger, says one percent is a decent increase, should be enough to drop pump prices here.

But he says it's contingent on other factors such as our exchange rate... if our dollar weakens, we won't see much, if any, decrease.

Any possible price drop in Auckland will likely be eclipsed by the 11.5 cent a litre regional fuel tax, which is set to take effect this Sunday.