Call for fuel price probe

by Colin Espiner

Deputy Prime Minister Jim Anderton is demanding a fresh investigation of petrol pricing as the international cost of oil slips lower.

Benchmark Brent crude for May delivery fell $US1.31 yesterday to reach its lowest level for nine weeks. The 5 per cent fall in one day follows a 16 per cent fall the previous week.

In Parliament, Mr Anderton referred to an article in yesterday's Press quoting oil companies as saying there was not yet room for a drop in prices.

"What we have is the price of oil going down while petrol stays up," Mr Anderton said.

"I'm very interested in getting the Commerce Commission on to the case."

Mr Anderton's call - as Minister of Economic Development - puts him at odds with colleague and Energy Minister Pete Hodgson.

Mr Hodgson has ruled out any official inquiry into petrol pricing. Yesterday, Mr Hodgson's office released to The Press a copy of a Ministry of Commerce report into petrol pricing dated March 16, which finds that, despite recent price rises, consumers are getting the best deal on petrol in years.

Mr Hodgson said he was satisfied the oil companies were not ripping off motorists, although he was pushing for a change in the Commerce Act to give the commission more power to prosecute for anti-competitive practices.

A spokesman for Mr Anderton said he was entitled to state his view as Minister of Economic Development. Mr Anderton was concerned about the effect of the price of petrol, particularly in struggling regions such as the Far North, where petrol margins were up to 8c a litre higher than Auckland.

The oil companies are standing firm, however. Shell spokesman Antonius Papaspiropoulos yesterday joined BP and Mobil in arguing that while oil prices were headed in the right direction it was too early for pump prices to fall.

Mr Papaspiropoulos said Shell was looking to next week's Opec meeting before making a decision on whether to lower prices.

He dismissed Mr Anderton's calls for another inquiry: "Mr Anderton can probe as deep as he likes but he's not going to find anything."

The ministry's report finds retail margins are the lowest since records began in 1983 - except in Kaitaia, a fact it blames on lack of competition there.

The margin is the difference in real terms between New Zealand retail and import prices, excluding taxes and levies but including insurance and freight costs.

"Over all, consumers have clearly been getting a better deal in recent quarters than they had during the middle of the last decade," the ministry's report says.

National's Energy spokeswoman, Pansy Wong, last night backed Mr Anderton's call for a fresh inquiry.

http://www.press.co.nz/2000/12/000322n23.htm

-- Martin Thompson (mthom1927@aol.com), March 21, 2000