Gull fires salvo at oil warnings

Pioneering biofuel supplier Gull Petroleum is lashing out at bigger oil companies for warning of dire consequences from making mandatory sales targets too ambitious.

BP and Mobil warned a parliamentary select committee

last week of high compliance costs from having to

install duplicate storage tanks and blending facilities at

up to nine oil terminals throughout the country.


After higher product costs, motorists could end up paying 7c to 15c more a litre for fuel, BP indicated in a submission on legislation requiring biofuels to account for 3.4 per cent of sales by energy content by 2012, in stages starting this July.

But Gull, which has been selling a 10 per cent ethanol-petrol blend since August at up to 12 service stations, says its rivals are “crying wolf”.

New Zealand Herald