5 Jul 2017

Government under renewed pressure to tackle petrol prices

From Morning Report, 7:15 am on 5 July 2017

The Energy and Resources Minister, Judith Collins, says more can be done to bring fuel prices down.

Judith Collins, Petrol

Photo: RNZ / AFP

The Fuel Market Financial Performance Study found retail fuel margins had increased significantly over the past five years.

Ms Collins told Morning Report prices fell about 10 cents a litre in the past three weeks leading up to the report, which is roughly a $300 million a year gain for motorists.

She wanted to hear from the petrol retailers first before deciding whether more regulation is needed to lower prices, or whether the companies can do it themselves.

"When for instance you find Gull can't, and other independents can't get into the South Island or Wellington because of the lack of terminal facilities, that can be dealt with, but if the industry comes up with some solutions themselves, I want to listen to that," she said.

The country's largest independent petrol company believed it's the reason why prices are lower in some parts of the country.

Gull Petroleum has 70 petrol stations in the North Island, mainly in Waikato and Bay of Plenty.

Its general manager, Dave Bodger, told Morning Report his company isn't one of those over-charging.

"You look at our scope of operations and where we operate, that is where the prices are sometimes 20 to 30 cents lower than they are for the consumer in the South Island.

"That's a tragedy really," he said.

Gull had been criticised for not providing enough information to allow the inquiry to reach a final conclusion, but Mr Bodger said his company didn't have the resources to provide all the information the inquiry wanted.

Labour calls for Commerce Commission follow-up

The Labour Party wants the Commerce Commission to further investigate whether there is enough competition among petrol retailers.

Labour energy spokesperson Stuart Nash said the government should act swiftly to determine whether motorists were paying too much.

Mr Nash said if fuel companies would not act, extra regulation would be needed to bring fuel prices down.

"It appears that the big boys just aren't listening to what the market is saying, i.e. get some competition, modify your ways.

"If that is the case then the only tool that government actually has is legislation or regulation."