Note the last sentence; more to come and the fact that Mobil is leading the pact (must need to pay for that avgas crisis in Australia)

Petrol companies raise pump prices by 3c

by Colin Espiner

Petrol prices are on the way up again.

Mobil announced yesterday it would implement a 3c a litre rise in the pump price of both grades of petrol and diesel from midnight last night. Caltex and BP quickly matched the rise.

Shell initially said it would not raise its prices yesterday, but later changed its mind and matched the other companies. A spokeswoman said she could not explain what led to Shell's change of heart, except to say that oil prices were too high.

The increases take the average price in Christchurch of 96 octane petrol back up to a shade under $1 a litre, at 99.9c a litre, and 91 octane to 94.9c a litre.

Both companies blamed the high price of crude oil, which they say has jumped $US3 a barrel in the last fortnight.

They also pointed to higher than expected demand for fuel after a northern hemisphere cold snap, and an ongoing production squeeze by oil producers Opec.

The Automobile Association said last night it acknowledged the reasons for the increase. Public affairs director George Fairbairn said the AA expected oil companies to act to lower prices just as quickly when oil prices fell.

BP managing director Greg Larsen warned prices could go higher again, however. But he said BP would be quick to pass on the benefits of any future drops on the world crude market.

Mr Larsen said BP had been under pressure to lift its prices for the last two weeks, when BP's costs surged 5c a litre.

"We never enjoy increasing our pump prices, but unfortunately New Zealand is at the mercy of highly volatile international crude and product markets, which leave us no alternative," he said. Challenge Petroleum commercial manager Nick Hannan said last night the company had not yet decided when to raise its price, but it was extremely likely to move soon.

"It's a move that we see is needed and, frankly, there is more to come."

http://www.press.co.nz/2000/04/000127n00.htm

-- Carl Jenkins (Somewherepress@aol.com), January 27, 2000