Source: Radio New Zealand
Average retail prices in New Zealand were still roughly what the Commerce Commission would expect. RNZ / Dan Cook
The Commerce Commission is putting fuel companies on notice if they hike prices too high at the pump.
The market watchdog is boosting its scrutiny while the conflict in the Middle East causes volatile global wholesale prices.
Commissioner Bryan Chapple told Morning Report that they were seeing big prices overseas, including refinery and shipping costs, but the average retail prices in New Zealand were roughly what they would expect.
“We’re seeing nothing out of the ordinary.”.
He encouraged motorists to shop around for better fuel prices.
“The best thing that we can all do, and I do too, is look at apps like Gaspy or notice the fuel boards when you’re going past them and look for a better deal,” he said.
“That has the effect of driving competition, which then forces other companies to lower their prices too.”
He believed competition was improving.
Law changes meant it was easier for operators who did not import their own fuel to access fuel, and they were opening often unstaffed sites that tended to offer lower prices, driving down prices of nearby stations, he said.
“You’re seeing some of the existing large companies converting some of their staffed sites to unstaffed sites in order to deal with the competition they’re facing, so I think that’s a good sign for Kiwi motorists.”
The Commerce Commission has been monitoring average fuel prices and how much they had increased since February, and Chapple said the Commission would publish that information weekly.
There were other factors at play including when operators bought their fuel and transport costs.
But Chapple said the Commission would call out operators if unjustified price rises started to appear.
“Prices go up in response to international prices. What we’ll be watching really closely is that they come down at the same rate as they’ve gone up when prices turn again.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
