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Home / Bay of Plenty Times / Business

Scooters sell as petrol prices rise

Bay of Plenty Times
7 Mar, 2011 10:55 PM3 mins to read

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Soaring petrol prices have prompted a number of Western Bay residents to consider shifting from four wheels to two.
The manager of Tauranga business Smiths Motorcycle Mad, Brian Smythe, said over the past couple of months the rising cost of fuel, coupled with the cost of registration and insurance, had prompted
families to drop from two cars to one, while filling the gap with a scooter.
"If you look around there's certainly a lot more scooters around on the road, that's for sure," he said.
Petrol prices rose sharply overnight, nearing record highs.
A litre of 91 octane now costs $2.16 - up five cents from yesterday - while a litre of premium is $2.22. Prices are three cents shy of 2008's record high prices.
Visiting oil economist Phil Verleger warned yesterday that New Zealanders could face fuel price rises of as much as 50c a litre if the situation in international oil markets was not resolved.
Bay of Plenty Regional Council transport policy manager Garry Maloney said while it was too early to tell if increasing petrol prices would translate to more people taking the bus, history suggested that would be the case.
"Last time petrol prices rose we did see an increase in the numbers of people using the bus and it is likely that should fuel continue to rise that trend will be repeated," he said.
The service manager at Judea business PF Automotive, Chris Bromley, said he was also expecting to field inquiries about cars being converted from petrol to LPG.
"I would think we might get a few more inquiries but whether or not they would eventuate I don't know," he said.
It cost about $3500 to have a vehicle converted from petrol to LPG, Mr Bromley said.
"That's quite a bit of fuel They've got to be a reasonable mileage, you're usually talking about 30-40,000km a year to justify it."
Ross Stanway, chief executive of Realty Services (Bayleys and Eves), said it remained to be seen whether the latest petrol price hike resulted in more people shifting closer to their central city workplaces.
"When prices went up a few years ago there was a move by some people to get closer to town for this reason," Mr Stanway said.
But there were many reasons why people shifted closer to the city and lower fuel costs was "not a major factor that has sustained through a long period of time," he said.

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