NZ ‘fleeced’ over fuel, PM claims
WELLINGTON: Prime Minister Jacinda Ardern has launched a scathing attack on fuel companies, saying she thinks ‘‘consumers are being fleeced’’ at the petrol pump.
But one of the biggest fuel companies in New Zealand has pointed the finger right back at the Government, blaming — in part — the Auckland regional fuel tax and the increase in the national fuel excise for the higher petrol prices.
Yesterday, Mr Ardern took aim at petrol companies’ high margins.
‘‘I am hugely disappointed in the level of price that consumers are currently paying at the pump for fuel,’’ she said at her weekly postCabinet press conference.
She said ‘‘consumers are being fleeced’’.
Given the concerns about ‘‘anticompetitive behaviour’’ in the fuel market, Ms Ardern has prioritised the passing of the Commerce Amendment Bill.
This would give the Commerce Commission the power to conduct market studies into fuel markets to better understand how the market is functioning.
Ms Ardern said the legislation was likely to pass within two weeks.
‘‘[Petrol companies] haven’t opened up their books to us in the past; so we’re going to have to force their hand.’’
BP welcomed this announcement and managing director Debi Boffa said the Commerce Commission’s independence would provide greater assurance to the New Zealand public and to Government that Kiwis were paying a fair price for fuel.
She said BP reviewed prices daily to ensure they were as competitive as possible.
‘‘There are a number of factors that influence the price of fuel, some of which are not within our control, including cost of product, the exchange rate, and taxes and levies.’’
Ms Boffa said recent price changes had been influenced by increases in the cost of product and the weakening New Zealand dollar.
‘‘In addition to this, the Government recently introduced the Auckland regional fuel tax plus increased the national fuel excise by 3.5c per litre (plus GST), impacting the price of fuel for motorists in Auckland and across the country.’’
Z Energy chief executive Mike Bennetts said he was pleased to hear the Government would expedite the passing of legislation, but disagreed that fuel companies were ‘‘fleecing’’ New Zealand consumers.
‘‘Z disputes that prices are unjustifiably high, and while margins have increased from an unsustainable level in 2008 which saw fuel majors exit New Zealand, it has not increased at the level suggested.’’
The fuel market was highly competitive, Mr Bennetts said, adding that Z would release its halfyear financials in early November.
‘‘We look forward to sharing an audited, accurate view of our profits with the public then.’’
Gull and Mobil did not respond to requests for comment.
AA petrol prices spokesman Mark Stockdale said Ms Ardern’s frustration with fuel companies’ margins reflected the feelings of many New Zealanders.
He welcomed the Government’s fasttracking of the Commerce Commission amendment.
‘‘The reality is we don’t have all the answers.
‘‘We don’t understand exactly why fuel prices are rising and how much of that is due to fuel companies raising their margins and how much is due to fuel companies raising profits.’’
He said there was a ‘‘whole lot’’ that was not fully understood when it came to how fuel companies calculated their margins.