Avgas price rise ‘another blow to users’

Press, 24 November 1979, Page 6

Avgas price rise ‘another blow to users’

PA Wellington The 15c a litre increase in aviation gasoline for commercial users announced by [ Mobil Oil (N.Z.), Ltd, is anI other blow to users now [working under reduced allocations, according to the Aviation Industry Association. “This has introduced significant disparity in prices among the three sources of supply available to New Zealand Avgas users, who can only with difficulty change allegiance from one supplier to another,” said the association. Mobil’s new price is 60.73 c a litre, an increase of 32.8 per cent. Shell and BP are the other two suppliers to commercial users, who are now restricted to 90 per cent of the Avgas they used in 1978. Mr M. D. Fitzgerald, general secretary of the associa-: tion, said that the increase | would add $l2 an hour tol

commercial users’ running costs. According to the commercial manager of Mobil Oil, N.Z., Ltd (Mr J. L. Gordon), the increase in the price of Avgas is attributable “basically to a supply problem." “The emphasis has been on trying to get supplies. The availability of the product determines the price,” he said. Mr T. R. Bayley, Mobil's public affairs manager, said that because New Zealand had no Avgas refinery, supplies came from all over the world. The price altered with the supplier and transport costs. “Since Iran was removed as a supplier a damaging blow has been dealt to Avgas consumers,” he said. “Suppliers can virtually charge what they like.” Mr Bayley said that no pool for the Avgas industry existed in New Zealand, as it did for motor gasoline, and consequently prices varied widely.