Petrol margins higher in N.Z.
By
BRENDON BURNS
in Wellington
Retail petrol price margins in New Zealand are still higher than in some other countries, in spite of deregulation, says the Minister of Commerce, Mr Butcher.
He urged petrol retailers to take a more competitive stance, saying those who did not would not survive. Mr Butcher said that the number of petrol outlets would reduce and those which remained would have to sell more petrol to remain profitable.
Australian retailers charged a maximum price margin of about 6c a litre compared with an average margin in New
Zealand of about Bc. Mr Butcher said an important element in competition was the use of price boards. About 90 per cent of Australian outlets use boards, but only about 60 per cent of New Zealand retailers advertised in this way.
Use of boards would help promote the sales of unleaded petrol, said Mr Butcher.
It could be used by about 30 per cent of New Zealand’s car fleet but made up about 12 per cent of volume sold.
Unleaded petrol was cheaper than leaded fuel, but no price incentive was effective unless motorists were aware of it, said Mr Butcher.
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Press, 27 July 1989, Page 16
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198Petrol margins higher in N.Z. Press, 27 July 1989, Page 16
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