Petrol price increases unjustifiable - AA(NZ)

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Petrol price increases unjustifiable - AA

The Automobile Association has slammed the latest petrol price rises as unjustifiable.

Shell, Caltex, and BP have joined Mobil in raising their pump price by 2 cents a litre.

Mobil's increase on Tuesday night took urban petrol prices to around 99.9 cents a litre for unleaded 91 and to $1.04 for premium unleaded in the main centres -- their highest level in a decade.

AA spokesman Geordie Cassin said the price rise was damaging to the oil companies' credibility with the public.

He said the reasons given for the increase were "excuses" that were not backed up by the facts.

"At the start of the year the oil companies said they needed motorists to pay 5 or 6c a litre more because of rising crude prices," he said.

"They got all that, in two 3c increases in January and February.

"Since then the price of crude oil has peaked, perhaps even fallen a little. We're sorry but the price increases just don't add up. "

Shell spokesman Antonius Papaspiropoulos said the company raised its prices 2c a litre across all grades yesterday afternoon in response to rising crude prices and a jump in the cost of refined oil from Singapore.

BP spokeswoman Jane Diver said the price rise for both grades of petrol and diesel was the result of continuing high crude oil costs, shipping costs, and the growing price of ready-refined petrol. The New Zealand dollar's weakness was another factor.

Caltex spokesman Bruce Hollett said its own costs had increased by 3c a litre in the last two to three weeks

http://www.press.co.nz/2000/09/000302n01.htm

-- Martin Thompson (mthom1927@aol.com), March 01, 2000


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