A sharp drop in the Kiwi dollar and increasing crude oil prices were flowing through into New Zealand’s fuel prices but Greenstone Energy, the New Zealand owner of the Shell-branded retail assets, will not pass these costs through to metropolitan Christchurch at this time.
The New Zealand dollar has dropped to around 75 cents against the United States dollar while Brent crude oil has hit a two and a half year high. The combination of these factors has placed immediate, strong pressure on New Zealand fuel prices.
“We have held off from doing this for as long as we can and we will hold increasing our prices until early this evening when the post work drive rush is over,” said Greenstone Chief Executive Mike Bennetts.
“The reasons why fuel prices have to increase are very transparent. We can’t sustain this across the country but, as a company owned by New Zealanders, now is simply not the right time to increase fuel prices in Christchurch.
“Right now, we’re focused on doing what matters for the people of Christchurch, including our own people.
“Holding prices in metropolitan Christchurch at current levels is the right thing to do for now. Many other companies are considering how best to respond to the needs of the people in Christchurch. We feel this is an appropriate and direct response for us at this point in time in addition to the other contributions that we have been making.
“We’re committed to making a difference in Christchurch and we’re working hard to support and enable the work of emergency services as well as delivering a constant supply of fuel to residents and local businesses.”
Mike Bennetts said there may be a time when prices have to also move in Christchurch but the company will hold off for the foreseeable future.