Shell Reduces Petrol Prices By Three Cents

Media Statement From Shell New Zealand

Tuesday 26 September 2000

Shell Reduces Petrol Prices By Three Cents

Shell New Zealand is reducing petrol prices by three cents as the three key petrol pricing indicators – crude oil costs, finished product costs, and the New Zealand exchange rate - improve.

Shell says the US decision to release 30 million barrels of oil from its strategic reserve, coupled with slightly improved finished product costs and a firming dollar, has prompted the move.

“Shell has been containing prices for petrol over recent weeks, and believes it is now in a position to pass on some early benefits to motorists.”

However, the company says diesel prices remain under pressure as the Northern hemisphere enters its winter season and the demand for diesel based heating oils increase dramatically.

Shell says the traditional cycle of diesel prices rising as the Northern hemisphere heads into winter is exacerbated this year by very low diesel stocks in the United States. This is leading to the unusual situation where diesel is costing more to purchase than petrol.

“Unfortunately, diesel and petrol have been out of kilter for some time. Diesel market price increases of only 23 cents over the past year have not kept pace with actual product cost increases of 31 cents. For New Zealand, this justifies a diesel increase if the situation does not improve.”

Ends

For more information contact:

Antonius Papaspiropoulos
Corporate Communications Manager – Oceania
antonius@shell.co.nz

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