9 Oct 2008

Pacific nations meet over petroleum scheme

8:11 am on 9 October 2008

A petroleum bulk-buying scheme for Pacific Island nations is being discussed at a meeting in Auckland.

Secure supplies of petrol are under threat as oil companies look to bigger markets and withdraw from the region.

A Pacific Forum adviser says the region uses 42,000 barrels per day against the global consumption of 82 million barrels a day.

Jarrod Morris says it is a tiny market and a bulk buying scheme will procure price stability and secure supply for Pacific countries.

Pacific Power Association executive director Tony Neil says supply issues have a major impact on the region's economic performance.

Mr Neil says the meeting must also consider alternatives to oil-based power generation.