Below are the AA's six conditions and Gull Petroleum's responses relating to Gull Force 10:

AA's conditions Gull's responses

1. Biofuels not costing more than existing fuels or resulting in an increase in the cost of existing fuels through cross-subsidisation. Gull Force 10 is three to four cents cheaper than competitor 98 Octane products (as at 1 August 2007), and we will continue to provide competitive pricing for NZ motorists.

2. Biofuels not compromising vehicle performance, including fuel economy. Gull Force 10 will improve vehicle performance because it is an enhanced 98 octane product.

3. Biofuels not damaging engine components or invalidating vehicle warranties. As with any fuel, customers should check with their vehicle's manufacturer prior to using Gull Force 10. Gull is very confident Gull Force 10 can be used by many vehicles.

4. Biofuels being clearly labelled at the pump, and 100 per cent mineral grade petrol being retained to provide motorists with incompatible vehicles with an alternative. Gull has clearly labelled Gull Force 10 at its service stations. Gull Force 10 is also the first biofuel in New Zealand to use the Energy Efficiency Conservation Authority's (EECA) biofuels label. Gull has retained 100 per cent mineral grade petrol as an alternative for motorists.

5. Biofuels being extensively tested to ensure that these concerns are fully resolved before biofuels are introduced for public sale. The Gull Force 10 product is not new in terms of ethanol blends being used in countries throughout the world - it has been successfully used for many years in Europe and countries like Brazil. Gull Force 10 meets all New Zealand fuel regulations.

6. Undertaking an extensive publicity campaign to inform motorists of the cost and benefits, and which vehicles are compatible with which fuel blends. Additional information is available at the sites where Gull Force 10 is available, and also on the Gull website. EECA is also endorsing and promoting the use of biofuels.

AA Verdict: The AA believes the introduction of Gull Force 10 meets the AA's biofuels requirements and congratulates Gull Petroleum for providing New Zealand motorists with the ability to choose a more environmentally friendly fuel.

Mr Noon says motorists should only use Gull Force 10 if it is compatible with their vehicles.

"The AA has been advised by the Motor Industry Association that a full list of cars that can use 10 per cent bioethanol will be available by Thursday 9 August 2007."

"In the interim the AA has published some general guidelines regarding the use of bioethanol on its website www.aa.co.nz. Additional biofuel information is also available from the Energy Efficiency Conservation Authority's website www.eeca.govt.nz."

For more information contact

Mike Noon
General Manager - Motoring Affairs
New Zealand Automobile Association
T. +64 4 931 9984
M. +64 21 659 704
E. mnoon@aa.co.nz
W. www.aa.co.nz

The New Zealand Automobile Association is an incorporated society with over one million members. It represents the interests of road users who collectively pay over $2 billion in taxes each year through fuels excise, road user charges and GST.