Refined Product Prices Lead To BP Price Reduction

NEWS RELEASE
BP NEW ZEALAND
www.bp.co.nz
For Immediate Release
26 September 2000

EASING REFINED PRODUCT PRICES
LEAD TO BP PRICE REDUCTION

A decline in crude oil prices world-wide over the weekend, after the United States government decision to release some of its strategic oil reserve, coupled with a decline in the refined (ready-to-go) costs of petrol and a stabilising exchange rate, are the major factors that have led BP to reduce its petrol prices by 3 cents a litre at its company-owned service stations with immediate effect.

BP’s Managing Director, Peter Griffiths, said that BP was acting in good faith in reducing prices today. “BP is reducing prices today to show our customers that we are serious about getting petrol prices down as quickly as possible. We’ve said in the past that we don’t like high prices and that we will reduce them as soon as we are able. That’s exactly what we’re doing.”

The cost of a barrel of refined petrol today is NZ$77 a barrel - a drop of NZ$9 a barrel overnight. “The reduction in crude oil and refined petrol costs over the weekend has averted the need for further price increases. But the volatility in the oil markets means we’ll need to watch our costs closely over the next few days.”

Today’s price reduction does not include diesel. While lower oil prices have already affected the cost of refined petrol, world-wide demand for middle distillate continues to put pressure on BP’s current diesel pricing.

While this reduction is encouraging, BP still expects some volatility caused by high demand in the United States and Europe heading into a winter, low stock levels at refineries and a volatile kiwi dollar.

This is BP’s first petrol price reduction since June 1st this year. Of the nine price reductions since June 1st 1999, BP has been the first to reduce its prices seven times. This reflects our commitment to offering the best possible fuel price to our customers.

ENDS

For further information, contact:
Oliver Mander, Pricing Manager
mandero@bp.com

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