Petrol station sale fears 'exaggerated'

Press, 24 March 1988, Page 5

Petrol station sale fears 'exaggerated'

Political reporter There will be some rationalisation in petrol [retailing after deregulation, the Minister of Energy, Mr Butcher, said yesterday. | But he said fears that oil companies might buy the most profitable service stations and force the rest out of business are exaggerated. In a speech to a seminar in Wellington about oil industry restructuring, Mr Butcher [said those opposed to deregulation overstated the independence that retailers enjoy. The rationalisation that, takes place will be of benefit ’ to the ■ New Zealand’ motorist, he said. Controls to regulate behaviour existed in the Commerce and Fair Trading ( Acts. . "The Government will still be able to step in to further tighten general controls! on predatory behaviour, if need be,”

said Mr Butcher. Deregulation would also : remove[ licencing protection for;petroleum wholesalers allowing bin increase in the imports of petrol and (other products. Any significant quantity of imports could jeopardise the survival of the Marsden Point refinery, ■ said I Mr Butcher. The Government did not want to see this occur ’and h[ad worked hard! to avoid closing. “We are | currently negotiating an’ assistance package’ with the refining Company.’ This will allow deregulation and should also keep the refinery open and competitive.” The level of assistance provided had to [be weighed! against . the costs borne by consumers and the need] to put competitive pressure on the [refinery to become more efficient, said (Mr ;Butcher. I