Greens put heat on oil firms

The Green Party is challenging oil companies to absorb the next price spike and not pass it on to motorists.

Co-leader Jeanette Fitzsimons said the oil price was likely to spike next week because of the impact of Hurricane Rita.

Rita is predicted to reach Texas on Saturday and Ms Fitzsimons said the oil refining centre of Galveston had a 42 per cent chance of being hit.

She said the Texas coast had a refining capacity of four million barrels a day (mbd) and the world used about 84 mbd. Coming on top of Katrina, and the 120 platforms in the Gulf that are still shut, this will be a major disruption ...

"In previous years the impact of extreme events on oil-producing regions could be mitigated by an increase in production elsewhere, but now not even the Saudis have the capacity to cover the loss of Texas."

Ms Fitzsimons said her challenge to New Zealand oil companies was: " Tighten your belts first, as we have all had to, rather than trying to maintain your very healthy profits by raising prices before the spike has reached your bottom line".

She said the companies were "suspiciously quick" to put up the price of petrol as soon as the cost of oil rose, much sooner than the oil in question had come through the delivery and refining process.

"I'm not asking the companies to subsidies motorists, just to keep their margins reasonable during this period."

- NZPA