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Petrol companies doing better

26 March 2001 Media Statement

Petrol companies doing better

Rare praise for the oil companies from the Deputy Prime Minister…

Jim Anderton says competitive activity in the retail petrol market in recent weeks is welcome.

"The competition we have seen lately has seen petrol companies undercutting each other and the consumer has been the winner.

"A year ago, every petrol retailer seemed to be required to increase their prices by exactly the same amount at exactly the same time. Now, petrol prices seem to be moving more independently and we are even seeing different brands of petrol sold in the same street at different prices."

It's not all good news however. As Minister for Regional Development Jim Anderton says there is still far too much unexplained regional variation in petrol prices.

"Why is it that petrol in Kaitaia costs six cents a litre more than it costs in Auckland, when both are the same distance from the Whangarei refinery?

"Why is petrol much cheaper in areas where a Gull station operates, and why does competition from a small independent retailer force prices down by more than competititon among the majors?"


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