Crude oil price did not flow through

Drops in crude oil prices did not flow through and squeeze refining margins in the last two months of 2006, New Zealand Refining said yesterday.

The improvement in the period - after margins were reduced in September and October - was because of high availability of processing units and good international prices for the refinery's products.

"Differing product specifications around the world, continued high demand for high-quality fuels and political tension are factors that continue to support margins," the company said.

- NZPA