Petrol Prices Continue To Fall Thanks To Competition

Steadily falling petrol prices underlined the benefits to consumers of greater competition, Enterprise and Commerce
Minister Max Bradford said today.

Mr Bradford welcomed Statistics New Zealand figures which showed household petrol prices had fallen for the fifth
consecutive quarter.

The household petrol price index was down 2.2 per cent in the March 1999 quarter.

"Household consumers are paying 10.8 per cent less for petrol than they were in the December 1997 quarter," Mr Bradford
said.

"The stark reality is that petrol prices have dropped throughout New Zealand since the arrival of Challenge and Gull into the
competitive market place.

"Both Gull and Challenge have announced they are moving into the South Island to take the benefits of competition to South
Island consumers.

"These latest statistics clearly show the benefits of introducing vigorous competition," Mr Bradford said.

"The electricity sector will have similar results as competition moves through the electricity market.

"Already some 917,000 or 55% of New Zealand consumers now pay (or can choose to pay if they switch retailer) an
electricity price that is lower than the price they faced as at 1 April 1998, " Mr Bradford said.