The Trade Commission in Aotearoa has expressed concern about price differences between the country’s major fuel companies. A year after the implementation of the Fuel Industry Act, the commission has found inconsistencies and price variations that cannot be clearly explained. In its quarterly fuel monitoring report, the commission found uneven price differences in cities and towns across the country.
Commission chairman John Small has written to all of New Zealand’s major fuel companies seeking an explanation for these price levels. The Commission is currently working with these companies to examine how prices are set and whether they are fair. As the regulatory body responsible for monitoring and regulating fuel markets under the Fuel Industry Act 2020, the Commission aims to promote long-term competition for the benefit of consumers.
However, current findings suggest that these price disparities cannot be accounted for by differences in distribution costs. Motorists in Whangarei are found to pay higher prices for fuel compared to other cities, which cannot be easily explained with the available data. Factors such as proximity to major fuel sources and import terminals do not explain these high costs. Hamilton, on the other hand, offers some of the lowest prices in the country, another anomaly the commission seeks to clarify.
Small reiterates that these significant price variations are worrisome, leading the commission to enlist the help of major fuel companies to shed light on the reported data.
Sources: Commerce Commission’s Quarterly Fuel Monitoring Report.
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