Bradford welcomes petrol competition

Energy Minister Max Bradford welcomed today's announcement that Gull Petroleum would be entering the New Zealand retail petrol market.

"This time a year ago nobody thought it was possible to have one, let alone three new competitors," Mr Bradford said. "I was always confident there were excessive margins on petrol in New Zealand, as shown by a number of international studies.

This is shown by Liberty Oil's intention, confirmed today, that it would reduce the price of petrol by around 10 cents a litre." Mr Bradford said that not only was competition good for consumers, but more im

portantly it would improve competitiveness of New Zealand businesses, especially those in the export sector. "There will undoubtedly by a tough commercial environment as a result of the competition, but that's the only way we can continue to improve our standard of living and international competitiveness," Mr Bradford said.

"The Government is looking to do the same with its electricity reform package where I have no doubt there will be gains of a similar magnitude."