7 August 2008

Petrol prices are due to peak oil not profits

The problem with petrol pricing is the end of cheap oil, Commerce Minister Lianne Dalziel confirmed today.

"The minister's independent study of petrol pricing in New Zealand released today reported that anti-competitive behaviour is not the cause of high petrol prices," Green Party Co-Leader Jeanette Fitzsimons says.

"I challenge the Government and industry to address the real issue we face with fuel prices - that there is a fundamental upward trend in fuel prices based on the global availability of oil.

"We need to acknowledge that the supply of cheap oil is nearing its end. Despite short-term fluctuations like the recent price dip, all the evidence shows that supply cannot keep up with demand any longer and a serious effort needs to be made to rapidly adapt our economy to a world without cheap oil.

"We need to stop looking for someone to blame and invest now in more sustainable forms of mobility.

"Spending up to $8 on roads for every $1 spent on public transport denies the reality of oil prices. We need almost the opposite ratios of investment in public transport infrastructure to secure our future mobility."

ENDS

© Scoop Media