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Home / New Zealand

Hangover leaves BP petrol price 8c out of kilter

By Mathew Dearnaley
28 May, 2007 05:00 PM2 mins to read

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KEY POINTS:

BP has put itself out of step again with other oil suppliers by eclipsing a 5c-a-litre weekend fuel discount with an 8c price hike.

The company has for the past two weekends led industry discount rounds, only to leapfrog these on Monday mornings, in tactics which could heavily
influence drivers' buying patterns if they persist.

It could be seen as offering motorists inverse hangovers, in that those who suffer higher prices risk being the ones who do not spend up large at weekends.

But the drawback for BP is that the rest of the industry is not following its precise beat.

Last week, BP had to halve an 8c fuel rise after the other oil companies lifted their prices from a weekend discount by just 4c.

Yesterday, the other three big companies held their prices at their weekend levels of 151.9c for 91-octane petrol and 97.9c for diesel, and minnow Gull went one better with a 1c drop at most of its 30 North Island sites.

That left BP alone last night at 159.9c for petrol and at 105.9c for diesel, which it eased back 1c during the day from an 8c hike.

BP's weekend discount tactics look like a bid to steal thunder from Gull, which has repeatedly goaded the bigger players into price cuts.

Gull regional manager Dave Bodger said he was relaxed that BP was trying to recover lost ground, after his company had made the market more "interesting" for motorists. He believed most would realise who was largely responsible for lower prices.

Shell spokeswoman Jackie Maitland, whose company often puts a brake on BP's rises, said it would try to hold out as long as possible against cost pressures.

Her counterpart at BP, Diana Stretch, insisted that motorists were still getting a good deal in view of international costs, even at the higher prices posted yesterday.

She said the North American summer motoring season had pushed up imported petrol prices, which were $4 higher a barrel yesterday for 91-octane than when pump prices were just 2c below BP's latest level.

Automobile Association spokesman Mark Stockdale said that although BP appeared to be discounting to "hide" later price hikes, motorists shouldn't complain if cheaper fuel became a regular weekend feature.

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