PETROL DECISIONS ANNOUNCED

Minister of Energy Hon Doug Kidd today announced the Governnments decisions on premium unleaded petrol.

The Petroleum Products Specifications Regulations 1995 will be amended immediately to:

1. impose a maximum limit of 50% on total aromatics in premium unleaded petrol for distribution to retail outlets
2. reduce the maximum limit to 48% in four weeks time.

The reduction to 48% is a precautionary measure to provide a margin over the 50% level at which car manufacturers guarantee their rubber components.

In the meantime the Government will closely monitor the current testing of rubber componentry and petrol being carried out by Industrial Research Limited, which is a Crown-owned research institute.

It will also closely monitor trends in car fires against the long term trend reported to the New Zealand Fire Service. In summer months over the last ten years the Service has attended around 12 - 15 car fires a week related to fuel components. In the last two weeks they have attended only nine fires.

If problems become evident from this monitoring the Government will take further action, including if necessary, further lowering the level of aromatics.

In addition Government has directed officals to report on:

Whether standards for rubber components for vehicle fuel systems and petrol pump dispensing equipment are adequate
Whether checks of fuel systems in vehicle Warrants of Fitness should be tightened.