By ANNE BESTON
New Zealanders will soon get cleaner diesel - for a few weeks - under a deal brokered by the Government.
Associate Energy Minister Paul Swain said yesterday that diesel with a reduced sulphur content would be pumped to Auckland for a six-week trial from early next month.
The rest of the country would get cleaner fuel for the next six weeks.
Though Mr Swain has been quick to give the oil companies and the New Zealand Refining Company credit for the compromise, the Herald understands he has been working behind the scenes to find a way out of the stalemate.
The row began in May when Mobil refused to use spare desulphurising capacity at Marsden Pt to provide cleaner diesel for Auckland as a short-term move, until the logistics of supplying the rest of the country were worked out.
The companies take their fuel from one pipeline from Marsden Pt and have to agree on changes to it.
Auckland Regional Council chairman Phil Warren had called for a boycott of Mobil stations because Mobil was the only company to disagree that Auckland should get cleaner fuel immediately. The company said the industry should wait until the logistics of getting it to the whole country were worked out.
Mr Warren yesterday withdrew his boycott call and said he was delighted with the latest move.
"This is a beginning, not an end. There is no going back to the standard we have endured until now."
Mobil spokesman Alan Heng said the company had always been "fully committed to lowering the levels of sulphur in diesel," but wanted it done fairly and equitably.
The aim of the trial is to lower the sulphur content of diesel in Auckland from between 2500 and 3000 parts per million to about 1000ppm.
Because of technical complications, fuel for the rest of the country will be reduced to 1600-1900ppm.
The New Zealand Refinery Company said it would absorb the cost of the trials until the oil companies could come to an agreement on when and how lower-sulphur diesel should be available to all motorists.
Shell New Zealand spokesman Ross Vintiner was did not know yesterday whether the trial diesel would cost motorists more.
The refinery has estimated sulphur content in diesel could be less than 50ppm within three years, but that would cost about $100 million.
The ARC has said that would mean an increase in diesel prices of less than 1c a litre.
The trial suggestion followed a report to Mr Swain by the oil refinery.
Mr Swain said the trial would provide data to help with a transition to lower-sulphur diesel until the Government's review of all fuels in New Zealand was complete.
A discussion document on the review would be made public early next month.
Cleaner fuel in pipeline
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