Some Gas-branded petrol stations struggling to justify cost of new price boards
Thursday, 17 February 2022
Petrol chain Gas says some of its independent retailers are finding it hard to justify the cost of expensive signage to display the price of premium fuels they sell.
As of last Friday, petrol stations have been required to display the price of higher octane fuels alongside the price of diesel and 91.
The regulation was designed to help address concerns that petrol firms were charging high premiums for 95 and 98 octane petrol, and on the assumption those premiums might come down if motorists were able to see prices before they pulled up at the pump.
But Gas general manager Nahid Ali said he believed the exact requirements of the new law were open to interpretation.
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A Gas-branded station in Ngaio, Wellington, wasn’t advertising the price of 95 on its price boards on Sunday.
Gas said it had been waiting on a Perspex pouch, but a handyman was now booked-in to install a new sign on the service station’s wall on Friday.
By coincidence, the petrol station is a just a kilometre away from a Z Energy petrol station in Crofton Downs that Z earlier admitted had “fallen through the cracks” getting compliant roadside boards.
Gas had written to the Commerce Commission seeking more guidance on what its retailers were supposed to do, Ali said.
The company and its retailers had been “very proactive” in anticipation of the legislation coming into effect on February 11, he said.
“Gas has recommended that its retailers invest in ‘top-spec’, industry-standard Led signs placed at or near the roadside at their premises.
“Gas has sourced and provided graphics, quotes, and helped with customisation where necessary to support its independent retailers,” Ali said.
But he said such signage was “very expensive and for some of these businesses the cost is extremely disproportionate to the volume of fuel being sold”.
“This has led to much discussion regarding the interpretation of the new law, and possible alternatives that Gas retailers can use to be compliant.”
Gas has asked the commission whether a price board could be “something as simple as an A3 or A4 piece of card with all the prices printed daily and placed in a window or on a wall visible to motorists”, and if there is a minimum font size for displays.
The company has also requested guidance on whether signage needs to be illuminated so it is visible in the dark.
“Gas is hoping to hear back from Commerce Commission soon and we will then be able to share the feedback with its independent operators,” Ali said.
Any non-compliance by smaller, independent petrol stations would appear to pose a dilemma for the commission with regard to enforcement, as it talked up the contribution they could make in encouraging price competition more broadly in a market study report in 2019.
The legislation states the price of different petrol grades must be visible from a car “at, or passing by” each site, unless any other legislation – for example restricting the location or size of signage at that site – would make that unlawful.
The rule does not apply to truck stops or marinas.
A commission spokeswoman said that, as of Tuesday, the watchdog had not received any complaints from consumers alleging petrol stations were not complying with the new rules.
“We believe most sites are compliant but there are likely to be a small number still bringing their signage up to a compliant standard,” she said.
“We have a range of enforcement tools available to us, ranging from education and warnings through to seeking penalties in the courts.”