Petrol Price Drop Welcomed

Energy Minister Max Bradford has welcomed today's reports of petrol companies dropping their wholesale petrol and diesel prices.

Wholesale margins had been creeping down recently, Mr Bradford said, noting that the prospect of competition was also being faced by petrol companies.

Meanwhile, Mr Bradford released the latest edition of the Energy Data File, a twice-yearly publication prepared by the Ministry of Commerce, which includes an updated analysis of petrol importer margins.

Mr Bradford said the analysis showed retail prices in New Zealand, relative to international prices and exclusive of taxes, had been increasing by an average of 0.7 cents a year since 1990.

"The Government is concerned that there has been less than vigorous price competition in the petrol market, and welcomes the decisions by Challenge, Gull and Liberty to enter the market," Mr Bradford said.

The Energy Data File also shows that new estimates for Maui gas reserves are excellent news for the future of natural gas in New Zealand, he said.
Estimates of Maui gas reserves had been revised up by about 40 per cent
(an increase of nearly 600 PJ to 2075 PJ).

The higher estimates came on top of promising finds in Taranaki and increasing levels of exploration, he said.

The Energy Data File was a valuable publication for the energy market, providing extensive and detailed energy supply and demand data. The latest edition includes national energy supply and demand statistics up to September 1997.