Call for intervention as petrol prices peak
The Automobile Association (AA) is challenging New Zealand’s fuel companies to cut the price of petrol, claiming margins are now at a level where politicians should intervene.
Petrol prices in many parts of the country are at the highest level in three years, at $2.149.
The so-called ‘‘main port’’ price is in place in Wellington and many parts of the South Island.
AA spokesman Mark Stockdale said based on its tracking of the margins on retail prices, there was no justification for the last time fuel companies raised prices on November 24.
Since then the New Zealand dollar had moved in the petrol companies’ favour, while commodity prices appeared to have eased, boosting margins further.
Stockdale said margins were now at a level which was well above average, and would typically prompt a response from the Government.
‘‘They’re at the level they’ve been at when ministers have got nervous in the past. At these levels, the previous [National] Government has questioned the margins and asked [fuel companies to] please explain.’’
The AA called for an immediate cut to prices of 4 cents a litre.
‘‘We’re asking a please explain and we’re sure that the new Government would be equally concerned about why margins are as high as they are,’’ Stockdale said.
In a statement, BP said price changes made in November ‘‘were due to increases in the price of Brent crude, which rose to the highest level we’ve seen since July 2015. At the same time, the exchange rate has been at its lowest point in 18 months.
‘‘BP has and continues to make significant investment throughout New Zealand, particularly in new sites and terminals, and we continue to work closely with the Government and [the Ministry of Business, Innovation and Employment]’’ regarding an inquiry into retail prices.’’
New Energy Minister Megan Woods has said publicly that referring the issue of petrol pricing to the Commerce Commission was a ‘‘live option’’.
She made the largely symbolic move of demanding that officials from the Ministry of Business, Innovation and Employment bring her the latest stage in the review as soon as possible, just days before they were due to provide it.
Earlier this year a report ordered by former Energy Minister Judith Collins found that the fuel market may not be operating competitively, and that margins had risen disproportionately to investment in recent years.
Retail petrol prices in New Zealand have risen sharply since the election, when the kiwi dropped in value as the market mulled the change of government.
At the start of November prices rose by 9c a litre in eight days.