New Zealanders cannot expect to be immune from increasing world crude oil prices, the chairman of this country's only oil refiner says.
Ian Farrant told New Zealand Refining shareholders yesterday fuel taxes here remained among the lowest in the world.
"NZRC has no influence over the price at the pump.
The companies that market oil products in the country are responsible for this," he said. "We as consumers have seen several cents per litre jumps in the past few weeks, unfortunately more up than down.
"The NZRC profit last year corresponds to a share of only about 3.5c per litre in the pump price."
In February, New Zealand Refining, whose share register is dominated by the big petrol retailers Mobil, BP, Shell and Caltex, reported a record net profit for the year ended December.
The after-tax profit of $139.8 million was up 43 per cent on the $97.5 million posted the previous year.
The company, which supplies around 80 per cent of this country's refined fuels, reported total operating revenue of $365 million, up from $281 million.
Farrant said the company had benefited from its business model. "We are a tolling operation; we do not have the costs or risks of owning huge quantities of hydrocarbons.
"The fact that we receive a fee based on world market prices means that we must remain world class to survive."
Farrant also raised concerns that "New Zealand, at present, was good at shuffling issues and not dealing with them" - such as electricity, greenhouse gases and the Resource Management Act.
As a capital intensive industry, the refinery needed certainty about infrastructure before making long-term investments.
"We have concerns over the lack of action and, in some cases, the lack of clear long-term policies that allow businesses like ours to make investment decisions."
- NZPA
