Fuel prices to be investigated

File Photo.

The cost faced by drivers at the petrol pump is going to be investigated by the Commerce Commission after recent high prices.

"New Zealanders deserve peace of mind that the price they're paying at the pump is fair," says Prime Minister Jacinda Ardern in a statement.

"At the moment we can't definitively say whether that is in fact the case across New Zealand so this is a market that most certainly warrants a full investigation."

The Commerce Commission market study will be a full and thorough analysis into competition in the market, says Commerce and Consumer Affairs Minister Kris Faafoi.

"This will enable us to better understand the market conditions and determine whether consumers' interests are being protected at present, and if not, what action needs to be taken."

He says it was in the public interest to ensure people and businesses were not paying too much at the pump.

"There are existing indications of competition problems in the retail fuel market that are of concern to me, such as the more than doubling of petrol and diesel importer margins over the past decade," he says.

"It's also a market that is hugely important to consumers and to our economy, given the extent to which we rely on fuel and the size of the market, with around six billion litres of petrol and diesel consumed for land transport use annually."

The study will begin on 5 December and the final report will be published within a year.

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4 Comments

Lip service

Posted on 04-12-2018 10:30 | By Angels

Nice try, we have heard this before. Notice how price really varies. In Tauranga where we truck fuel to other n island towns our fuel prices are some of the highest yet cheapest delivery cost. So that eliminates some of the excuses. Government only interested in the tax collected , not the people. Corporate greed as allowed by weak government. Tired of lip service and zero action.

fuel price

Posted on 04-12-2018 08:27 | By dumbkof2

coincedence, govt enquiry starting, fuel prices dropping

Yeah..

Posted on 04-12-2018 08:09 | By Marshal

The Kiwi US dollar rate is way up as well.. That is always their other go too excuse.LOL

Yeah right . !

Posted on 04-12-2018 08:07 | By Marshal

The simple maths are, oil was near $150 US a barrel diesel was $1-50 a litre on account of the oil price. Now oil is $51-00 US a barrel and diesel is $1-50 a litre. Huh.. The oil giants have soaked up all the margins and call it refining costs . LOL..

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