Oil companies’ replies cagey

Press, 25 May 1989, Page 5

Oil companies’ replies cagey

Oil companies are reluctant to discuss credit arrangements for retailers, but deny their policies have caused an apparent credit drought for motorists. As a petrol wholesaler, BP Oil New Zealand, Ltd, expects its retailers to pay for one fill before the next is delivered. A company spokesman denied that BP sought cash on delivery or payment first. Many BP service station customers took advantage of a direct debit system mutually arranged with the retailer. As a service station owner, BP came to various individual agreements with its managers, the spokeswoman said.

"We don’t have a blanket policy on credit,” she said. BP was trying to encourage customers to use its new Preference credit card for all service station purchases. Mobil Oil (N.Z.), Ltd, was unwilling to disclose its delivery and petrol payment requirements for

retailers. “It varies for different customers,” a spokesman said. Mobil believed the real reason for a move away from true credit accounts was the pressure on its dealers from servicing overdrafts and mortgages, he said. Caltex Oil (N.Z.), Ltd, also has several different arrangements with its petrol retailers. A Caltex spokeswoman said it was incorrect the company demanded cash on delivery generally, but she admitted some customers might be asked to pay promptly from time to time. “We don’t have an over all policy. We are happy for individual stations to take whatever steps they consider appropriate with customers,” she said. Shell Oil (N.Z.), Ltd, offers several credit options for individual service stations. These were confidential, a company spokeswoman said. Shell offered no other comment.