Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Oil companies should soften blow to motorists

22 September 2005

Oil companies should soften Rita's blow to NZ motorists

The price of oil is likely to spike next week because of the impact of Hurricane Rita but oil companies should absorb the rise themselves before passing it on to Kiwi motorists, Green Co-Leader Jeanette Fitzsimons says.

Hurricane Rita is likely to seriously reduce US oil production when it makes landfall in Texas in the next couple of days. The National Hurricane Centre predicts it will hit the Texas coast at 1.00am Saturday local time, (6.00pm Saturday, NZ time) then turn inland (see www.nhc.noaa.gov). Galveston, a major oil refining centre, is given a 42 percent chance of being hit. There is also a likelihood of oil wells further inland being closed down.

The Texas Coast has four million barrels a day (mbd) of refining capacity. The world currently uses about 84 mbd. Coming on top of Katrina, and the 120 platforms in the Gulf that are still shut down, this will be a major disruption of supply. In previous years the impact of extreme events on oil-producing regions could be mitigated globally by an increase in production elsewhere, but now not even the Saudis have the capacity to cover the loss of Texas.

"The world is currently close to maximum oil production to meet the huge and growing demand from China and India coming on top of the OECD countries, so there simply isn't the slack in the system to accommodate a major oil production region being knocked out," Ms Fitzsimons says.

"So I want to lay down a challenge to New Zealand's oil companies - tighten your belts first, as we have all had to, rather than trying to maintain your very healthy profits by raising prices before the spike has actually reached your bottom line.

"The companies are suspiciously quick to put up the price of petrol as soon as the cost of oil rises, much sooner than the oil in question has rippled through the delivery and refining process. I'm not asking the companies to subsidise motorists, just to keep their margins reasonable during this period.

"New Zealanders also need to be aware that yesterday's current account deficit blow out will push our dollar down. That means that while Rita may make the price of petrol go up, it will be the Kiwi dollar that will stop it from coming down again any time soon," Ms Fitzsimons says. For more information

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election