Shell NZ gains amid BP backlash

BP New Zealand would not comment this week whether the spill had affected business. Photo / Rotorua Daily Post

BP appears to have suffered a hit on its New Zealand market share due to a backlash over the Gulf of Mexico oil spill.

Even though automotive fuel sales were down in April and May, competitor Shell is claiming an increase in customers over the past four to five months.

This means if Shell has gained it is at the expense of the other oil companies. The oil leak occurred on April 20.

Latest Statistics New Zealand figures show a 1.9 per cent monthly drop in fuel sales in May and a 2.1 per cent fall in April. The figures are seasonally adjusted.

In June BP New Zealand said calls to boycott its stations in protest over the spill had not had a noticeable impact on sales. This week a spokeswoman said the company would not comment on whether its business had been affected.

However, an informal survey by the Herald on Sunday shows the environmental disaster is putting off Aucklanders, including one advertising agency manager who now has an "anything but BP" policy for his 26 company cars.

Shell spokesman Jonathan Hill said the company had noticed "quite a pleasing increase in customers choosing to shop at the Shell brand".

"What's driving that is hard to say."

In April the local Shell operation was bought by Greenstone Energy, which is backed by Infratil and the New Zealand Superannuation Fund.

"The only thing we can attribute to that with any level of certainty is we're getting a fair level of feedback that people like shopping at New Zealand-owned service stations," Hill said.

Motor Trade Association marketing and communications manager Ian Stronach said members had reported a few incidents involving BP stations.

"We understand one or two people have made statements or publicly driven off."

However they were in the minority, he believed. "It's possible Shell would have [gained business] and it's mainly on the back of New Zealand-ness, rather than people's widespread antagonism."

Figures on market share in the oil industry are notoriously difficult to get.

The oil companies will not volunteer the information. Caltex and Gull both said they had not seen any change in custom since the oil spill.

The Ministry of Economic Development gathers statistics on consumption of petroleum products by company but said it could not release them because of commercial sensitivities.

BP's bad press continued this week, with British Greenpeace activists claiming to have shut down all BP petrol stations in London.

Meanwhile, the company announced a second quarter loss of US$17 billion ($23 billion) and confirmed under-fire chief executive Tony Hayward is to step down. He will be replaced by an American Bob Dudley on October 1.

BP New Zealand Holdings made a net profit of $79.5 million for the year to December last year but did not pay a dividend to its British parent. The spokeswoman said the company had elected not to return a dividend to its shareholder for the past few years.