Z Energy will display premium petrol prices at Z and Caltex 'immediately'

Friday, 28 February 2020

Commerce Minister Kris Faafoi was optimistic about the impact of the fuel market study in December.

Z Energy it will display the price of premium petrol at all its Z and Caltex service stations by the middle of the year, chief executive Mike Bennetts says.

An 18-month grace period under proposed pricing reforms of the industry was not necessary, Bennetts said.

'We find it surprising that it would take 18 months to bring about price transparency. It is essential that all consumers are able to compare all prices across all sites as quickly as possible.'

The Government released its response to a Commerce Commission fuel market study on Thursday, which found that motorists were paying more for their petrol than they should.

Service stations have been given 18 months to comply with new price transparency rules after new legislation comes in this year.

* Petrol could fall 18c a litre if fuel retailers forced to show price

* What we are paying for when we buy petrol**

Mike Bennetts, chief executive of Z Energy says price transparency could be bought about 'immediately'.

It is proposing changes to make the market more competitive, and bring down the cost of fuel, through a new Fuel Market Bill.

Premium prices will also be required to be advertised on the roadside board at service stations.

AA spokesman Mark Stockdale says 18 months is too long when greater competition could be realised sooner.

The big petrol companies would also be required to advertise their wholesale prices at storage terminals.

While Z Energy welcomed the the announcement from the Government, Bennetts said displaying premium prices was something that could be done 'immediately'.

There were both consumer and competition benefits to measures like terminal gate pricing and displaying premium fuel prices on all price boards.

Commerce Minister Kris Faafoi wrote to fuel companies last year to suggest they move early on displaying premium brand petrol prices on forecourt display boards, before regulation came in.

AA spokesman Mark Stockdale said an 18 month delay was at odds with Faafoi's request to the sector, when the benefits to competition could be realised sooner.

Stockdale said some service stations would find it harder to comply, but stations that didn't have roadside boards at the moment or those changing prices manually could make changes quickly.

Those using digital signs would need some time to modify signs and purchase new equipment, but that shouldn't take 18 months, he said.

'Service stations may need exemptions on a case by case basis, so there does need to be some flexibility,' he said.

'We would want that time frame to be less,' Stockdale said.

Price differences between regular and premium can be up to 20 cents and by displaying the premium price that gap will fall, he said.

The Government is aiming to pass the bill in the middle of this year, with industry consultation on proposed regulations.