PM’s fleecing comment adds fuel to price fire
Petrol companies are pushing back on the prime minister’s claim that New Zealanders are being ‘‘fleeced’’ at the pump.
In response to petrol prices hitting record highs, Prime Minister Jacinda Ardern said the Government would rush changes to the Commerce Act to allow the Commerce Commission to investigate the margins on fuel.
Gull general manager Dave Bodger welcomed the inquiry but said the oil industry was an easy target for politicians.
‘‘I’ve been in the oil game for a fair while and it’s pretty open slather and politicians like to kick people in the industry around,’’ Bodger said.
‘‘We keep prices down by having fewer employees. We only have 30 Gull staff around New Zealand, we don’t employ a public relations department or consultants. There’s a whole lot of money we’ve just saved there.
‘‘If you run that philosophy across your whole business you run your business more efficiently.’’
In a statement, Z Energy chief executive Mike Bennetts rejected Ardern’s claims that customers were being ripped off. ‘‘Z believes the fuel market is highly competitive, but the way to satisfactorily demonstrate this and give consumers the confidence they need is to have the level of transparency that a market study can bring.’’
Bennetts said Z’s profit margin was not the reason for the price surge. ‘‘Z will release its half-year financials in early November. We look forward to sharing an audited, accurate view of our profits with the public then.’’
Mobil New Zealand country manager Andrew McNaught said the industry was competitive and its fuel prices had been predominantly driven by a combination of the excise duty and fuel tax, increased product costs and fluctuating exchange rates. ‘‘New Zealand has a highly competitive petroleum market,’’ McNaught said. ‘‘While New Zealanders continue to receive competitive pricing on fuels, setting retail prices is a balancing act between the immediate effects and influences of the market versus the longer-term outlook for business and the industry.’’
BP New Zealand managing director Debi Boffa said the report would provide greater assurance that Kiwis were paying fair prices for fuel.
Boffa said the price hikes had been influenced by the Auckland Regional Fuel Tax, the weakening New Zealand dollar and an increase in the commodity price.
Automobile Association spokesman Mark Stockdale said Ardern’s comments reflected the level of ‘‘frustration and anger’’ being expressed by motorists, who felt they had been ripped off.
He said there was still a lack of transparency as to why prices differed from region to region.