Commerce Commission review would give answers, Z boss says

Tuesday, 28 November 2017

Z Energy chief executive Mike Bennetts says the Commerce Commission would do a good job of reviewing the petrol market.

Z Energy boss says the competition watchdog would do a better job at reviewing petrol pricing, if given the chance.

Mike Bennetts said the Ministry of Business, Innovation and Employment (MBIE) petrol pricing study released in July was 'inconclusive' and 'disappointing'.

He put its weaknesses down to too little time, and data only being provided by a 'little slice of the market,' not all 21 fuel companies that run petrol stations across New Zealand.

Energy Minister Megan Woods said a Commerce Commission review of the fuel market is a 'live option'.

Only the four largest fuel companies Mobil, Gull BP and Z provided financial information to the MBIE to carry out its study earlier this year.

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An MBIE study of petrol pricing did not conclude whether prices were reasonable or not.

However not all of those companies gave an equal amount of information, the study's findings said.

Last week, Energy Minister Megan Woods said taking the study further to the Commerce Commission was a 'live option'.

The commission could soon be granted new powers to undertake market studies. That would allow it to get its hands on financial information that was not provided by companies for the MBIE study.

A commission review of all fuel companies would prove that big companies did not determine petrol prices, and would restore consumer confidence in large companies like Z, Bennetts said.

'There is 21 participants that are actually out there, and 70 per cent of the prices that get determined at service stations around the country are set by mum and dad businesses. It is not set by the big companies like ourselves.

'The results would confirm that fuel pricing in New Zealand is fair and reasonable.'

The MBIE study concluded that there was reason to believe petrol prices in New Zealand were unreasonable, but that was not certain.

Then-energy and resources minister Judith Collins ordered the MBIE study in February after she vowed to 'get to the bottom' of rising and inconsistent petrol prices.

Bennetts said the commission would 'have plenty of time to get the job done properly,' and would 'make sure it had all of the data it needed to have a thorough and comprehensive review completed'.

'At the very least, it would get to conclusive findings.'