Three companies pump up petrol prices yet again

by Kelly Andrew

Motorists still reeling from last week's 5c a litre price rise have been hit again with a 4c increase by three of the four main oil companies.

Motorists will pay about 10 per cent more to fill up their cars than they did a week ago after Shell, Caltex, and Mobil raised their prices yesterday.

Unleaded 91 petrol in main centres now costs $1.089 a litre, and premium unleaded $1.139. BP and Challenge are considering similar price increases today.

Caltex general manager of sales Bruce Hollett said the falling value of the New Zealand dollar and increased international oil costs were behind yesterday's decision.

"Prices of refined and crude oil went up 1-2c a litre at the weekend, so there's a lot of pressure on margins."

Mr Hollett said this was unlikely to be the last price rise. "Given what the dollar is doing I'd say there will be more increases in the next few days."

BP spokeswoman Jane Diver said the company believed there was justification for a price rise, but was waiting to decide by how much.

She said the decision would be influenced more by the cost of refined fuel than the falling Kiwi dollar. BP imports 50 per cent of its fuel already refined. Deputy Prime Minister Jim Anderton has repeated his criticism of oil companies' pricing.

"We are paying 9c more for our petrol than we were three months ago when crude oil was more expensive that it is today," he said.

Alliance MP Grant Gillon said the fact that petrol prices in Australia had remained relatively stable "puts a lie to the argument that international prices are pushing up petrol prices in New Zealand".

Mr Gillon's spokesman said he had contacted Caltex's head office in Sydney yesterday and found petrol prices had gone up by just more than 2c in the last week.

The Australian and New Zealand dollars had suffered similar drops against the US dollar.

Mobil spokeswoman Rowan Macrae said petrol prices in Australia rose more often but by smaller amounts.

"New Zealand prices are tracking reasonably similar to Australia's. Prices are going up everywhere - it's not just in New Zealand."

Energy analyst Alan Jenkins said oil companies appeared to be pushing the envelope on prices.

"There's a real danger where there's upward pressure on prices they'll take more than they should. These are big jumps."

The price rises did not match small drops by the dollar and gradual rises in crude oil.

http://www.press.co.nz/2000/21/000523n00.htm

-- Martin Thompson (mthom1927@aol.com), May 23, 2000