Challenge Offers Fair Deal For “High Octane”
The Challenge commitment to offering motorists a fair deal will see the company close the five-cent gap between unleaded 96 high octane petrol and regular grade unleaded 91 octane effective from midnight on 30 September, 1999.
“The five cent differential between the two grades of petrol is a hang-over from the days when the oil industry had the additional expense of adding lead. We don’t add lead any more and so the price should reflect that change,” Bob Constantine, Challenge General Manager, says.
Unleaded 96 high-octane petrol is most commonly used in older vehicles, classic cars or by high performance vehicles.
Challenge believes it is difficult to justify charging motorists $1 a litre for high octane 96 petrol at this time and so will hold the price. But the company will have to increase the price of unleaded 91 octane by two cents per litre in response to continuing increases in the cost of oil.
“We need this modest price increase to cover the additional costs now flowing through our business, ” Bob Constantine says. “But we are happy that by closing the price gap of the two petrols we can pass some benefits to the motoring public of New Zealand who are supporting Challenge so well.”
Challenge will also not raise the price of diesel, a move that is very much in the immediate interest of the transport sector in New Zealand and the economy generally. If prices of diesel or petrol do rise further then Challenge would be forced to reconsider its decision.