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Katrina No Excuse For Latest Petrol Price Rise

1 September 2005

Hurricane Katrina No Excuse For Latest Petrol Price Rise

The AA has rejected claims that Hurricane Katrina, which has devastated the southern United States and seriously disrupted oil production, is responsible for the latest petrol price rise.

AA General Manager, Corporate Communications, Greg Hunting, said the jump in oil prices caused by Katrina should not impact on petrol prices in New Zealand for several weeks.

"The petrol being sold here today is from oil purchased several weeks ago, and should reflect that lower price, not the price of oil this week. It is simply not credible to blame this week's disaster in the U.S. for yesterday's big jump in prices," he said.

"At the same time motorists should be aware that the apparent extent of damage in the US will mean higher prices in the medium to long term.

"For this reason we're renewing our call on whoever forms government after the election to immediately look at suspending the five cent roading levy to provide some relief for families.

"When the Government announced the introduction of the five cent levy, petrol prices were around a dollar a litre and the government was collecting around 11 cents in GST per litre. Now that petrol is over $1.50 they're collecting 16 to 17 cents in GST and the windfall difference, which was not budgeted for, more than covers the five cent roading levy needed to pay for better, safer roads," he said.


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