Response to petrol study

Attention Newsrooms

7 August 2008

Shell New Zealand response to Hale & Twomey study : The New Zealand petrol market – review of ACCC report applicability (commissioned by New Zealand Government)

Shell New Zealand welcomes the report released today by the New Zealand Government reviewing the applicability of the ACCC report into the price of unleaded petrol in New Zealand.

The report’s conclusions are consistent with Shell’s previously stated position that the industry at both the wholesale and retail level is fundamentally competitive, domestic prices are driven by international factors, the New Zealand market is more transparent than Australia, and contrary to perception, retail prices go down as quickly as they go up.

The report also confirms that, like Australia, New Zealand has one of the cheaper petrol prices in the OECD (fifth cheapest) a little higher than Australia’s (primarily due to higher taxes).

Shell New Zealand Retail General Manager, Mark Forsyth, said: “Shell strives to provide customers with competitively priced fuel. This study confirms that Kiwi drivers benefit from New Zealand’s competitive and transparent fuel market.”

Mr Forsyth adds: “Shell is a leading supporter of quality, low emission fuels, and the report highlights that advances in fuel specifications come at a cost. The ability of New Zealand importers to source reliable supplies of competitively priced fuel from overseas refiners and traders is impacted when our fuel specifications are more advanced than any other country in the Asia-Pacific region.”

The report suggests MED should expand its monitoring of daily margin movement. Shell initiated discussions with officials several months ago to discuss how we can assist in this area, and we remain committed to working with officials to improve understanding of the fuel market. This is especially key with proposed Government initiatives around biofuels and emissions trading likely to be implemented in the near future.”

ENDS

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