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The Light Dawns – Reality Bites #83

April 5, 2010
tags: , , ,

I predict mass “anger” from the ill-informed when Infratil are unable to lower petrol prices like the ill-informed believe they should.

Petrol prices are mainly dictated by world supply and demand – not by refining/transport/retail margins.

Infratil should be buying infrastructure not retail outlets.

NZ Herald reader – Kirk – commenting on whether Infratil and the Superannuation Fund purchase of Shell’s retail NZ assest is a good thing

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from → Investment, New Zealand
3 Comments
  1. dimmocrazy permalink
    April 5, 2010 6:58 pm

    Indeed. Difficult to imagine an Infratil business model that features gas stations. The only thing I can think of is the real estate and locations involved, but that requires a pretty futuristic scenario. Perhaps Infratil has information we don’t have, otherwise it looks like a strange diversification.

    • adamsmith1922 permalink*
      April 5, 2010 7:38 pm

      One of the things I find interesting is the presumption by so many that somehow the ownership of the gas pumps by NZ interests is going to make some sort of magic difference.

      Given that margin is effectively controlled by the oil supplier, this does not seem to make a hell of a lot of sense.

  2. Adolf Fiinkensein permalink
    April 5, 2010 5:06 pm

    If they were so profitable, Shell would not have sold these businesses. Note they hung onto Fulton Hogan.

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