Fuel price rise thought likely

Press, 4 October 1984, Page 8

Fuel price rise thought likely

PA Palmerston North

Road transport operators should be prepared for another rise in fuel prices, said the marketing director of Mobil Oil New Zealand, Ltd, Mr Jack Hazlett, on Wednesday. “The financial plight of oil companies has never brought a lump to anyone’s throat,” he told the Road Transport Association conference in Palmerston North.

“But I assure you that the recent increase was absolutely necessary, and you should expect another equally necessary increase in the near future.” he said. “The sad fact is that we buy all our oil in United States dollars.

“Even if world prices go down, we can end up paying more if the United StatesNew Zealand exchange rate deteriorates, as it steadily has over the last few years, devaluation aside.”.

Next year New Zealand would begin paying off the capital of loans for the Marsden Point refinery. “Until now we have just been paying the interest,” Mr Hazlett said. “It was a condition of the loans that the cost of the expanded refinery be passed on direct to the consumer. The Government has no option.

"So you can expect fuel to constitute an even higher percentage of your operating costs in the near future,” he said.