Fuel companies push back on PM's claims Kiwis are fleeced at the pump
Tuesday, 9 October 2018
Petrol companies are pushing back on the Prime Minister's claim that New Zealanders are being 'fleeced' at the pump.
In response to petrol prices hitting record highs, Prime Minister Jacinda Ardern said the Government would rush through changes to the Commerce Act to allow the Commerce Commission to investigate the margins on fuel.
Gull general manager Dave Bodger welcomed the consumer watchdog's inquiry but said the oil industry was an easy target for politicians.
'I've been in the oil game for a fair while and it's pretty open slather and politicians like to kick people in the industry around. It's obviously that time of year. Que sera sera.
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'We market ourselves by keeping prices down and we'll continue to do that.
'We keep prices down by having fewer employees. We only have 30 Gull staff around New Zealand, we don't employ a public relations department or consultants. There's a whole lot of money we've just saved there.
'If you run that philosophy across your whole business you run your business more efficiently,' Bodger said.
In a statement, Z Energy boss Mike Bennetts rejected the Ardern's claims that customers were being ripped off.
'Z believes the fuel market is highly competitive, but the way to satisfactorily demonstrate this and give consumers the confidence they need is to have the level of transparency that a market study can bring.'
Bennetts said Z's profit margin was not the reason for the price surge.
'Z will release its half-year financials in early November. We look forward to sharing an audited, accurate view of our profits with the public then.'
Mobil NZ country manager Andrew McNaught said the industry was competitive and its fuel prices had predominantly driven by a combination of the excise duty and fuel tax, increased product costs and fluctuating exchange rates.
'New Zealand has a highly competitive petroleum market, with three major fuel suppliers, a significant specialised retailer and two supermarket chains all actively engaged in retailing fuel,' McNaught said.
'While New Zealanders continue to receive competitive pricing on fuels, setting retail prices is a balancing act between the immediate effects and influences of the market versus the longer-term outlook for business and the industry.'
BP New Zealand managing director Debi Boffa said the report would provide greater assurance that Kiwis were paying fair prices for fuel.
Boffa said the price hikes had been influenced by the Auckland Regional Fuel Tax, the weakening NZ dollar and an increase in the commodity price.
Automobile Association spokesperson Mark Stockdale said Arden's comments reflected the level of 'frustration and anger' that was being expressed by motorists, who felt they had been ripped off.
Stockdale said while oil companies' margins made up the smallest chunk of the actual petrol price, there was still a lack of transparency regarding why it differed from region to region.
'If the Government can fast track the Regional Fuel Tax, why shouldn't they fast track the inquiry,' Stockdale said.
'The suspicion is that fuel companies are making large profits, but there is no evidence of this. That's what the detailed market study the Commerce Commission will provide.'
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