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Home / New Zealand

AA defends BP 'rewards' deal

By Mathew Dearnaley
NZ Herald·
30 Apr, 2008 05:00 PM2 mins to read

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KEY POINTS:

BP's leadership of the latest fuel price hikes has raised questions about its inclusion in the Automobile Association shopping "rewards" scheme.

Herald readers have challenged the AA's credibility as an independent motorists' organisation while encouraging them to earn retail points by filling up on a brand often the
first to raise pump prices.

"It would carry a lot more weight if the association had not given BP huge market dominance when it provided the oil company with more than 1.2 million AA members as customers by way of the AA Rewards scheme," wrote Stewart Ostler.

David Anning said it might be time the AA split into separate commercial and advocacy organisations, given its "unholy alliance with the motor fuel industry in its close relationship with BP, the leader in fuel price rises".

AA motoring affairs manager Mike Noon insisted his advocacy teamoperated entirely independently of the organisation's commercial operations with even-handed criticism of any unjustified price rises.

"We would give BP just as hard a time as any of the oil companies," he said.

"I don't care whether they've got a rewards deal with us or not, we will hold them to account for their pricing. If their pricing is out of line, we will suggest our members go to the opposition - which is what we were doing last week."

He congratulated Shell, Mobil and Caltex for holding out against price rises over Anzac weekend, while BP remained at new heights. And he offered extra praise to industry minnow Gull for announcing it would keep its prices down until at least this morning.

AA membership chief Dougal Swift said the organisation selected BP as one of its original four retail partners when it began its rewards scheme in 1998, because it had the most outlets from which to offer purchase points.

The scheme has grown to more than 40 retailers, and an agreement the AA regularly renegotiated with BP "specifically preserves our independence".

Members earned one 10c point for every $15 spent, which today buys about eight litres of 91-octane petrol.

Motorists last night stood to save 5c a litre by filling up at Gull's stations rather than at those of the four oil majors, although the smaller company will review its prices this morning.

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