BP Lifts Petrol Prices
For Immediate Release
4 May 2000
BP Oil New Zealand Ltd is lifting the price of petrol by three cents a litre, effective immediately.
The increase is due to rising crude oil costs and increases in the cost of already refined petrol. BP imports about 45% of its petrol ready-refined from refineries in Australia and Singapore.
This crucial ‘product market’ for petrol has jumped from NZ$55 to NZ$62 per barrel in the past three weeks due to refinery shut-downs in Asia and industrial action at refineries in Australia. Crude oil also rose from NZ$41 to NZ$48 per barrel in the same period.
The increase takes the price of petrol at most BP company-owned service stations in the main centres to 98.9 cents (Unleaded 91) and $1.039 (Premium Unleaded).
Managing Director Peter Griffiths said the price rise is regrettable, but inevitable as regional product prices rise and crude oil costs increase, despite earlier optimism following OPEC’s decision to boost oil production.
“We have seen an upward movement in these costs for a few weeks, but resisted lifting our prices in the hope they would soon drop again.”
“I’m expecting the current higher refining margins will be short-lived as refineries resume normal operations, but the reality is the fuel market is extremely volatile. Motorists may have to get used to frequent price fluctuations.”
This increase is the first since March 8, 2000 and follows five rapid price drops.