Commerce Commission will look into fuel market

Newstalk ZB ,
Publish Date
Monday, 3 December 2018, 4:00PM

A green light for the Commerce Commission to look into whether Kiwis are being fleeced at the pump.

The Commerce Minister has confirmed the retail fuel market will be the Commerce Commission's first market study.

Kris Faafoi says given its size, and our reliance on the market, it's important to see whether consumers' interests are being protected, and if not, what action needs to be taken.

The Prime Minister says she's asked relevant Ministers to prepare for any recommendations.

Jacinda Ardern says a draft report may be available within nine months, and action might be taken then.

"Essentially, what I want to make sure is that we are ready to move to act as quickly as we can, depending of course on what the Commerce Commission finds. I don't want to pre-empt that, but if they make a case, I want to make sure we're ready to go."

Despite a 13 percent drop in petrol prices, the Prime Minister's concerns about the industry still stand.

Ardern says during October and November, the price of petrol fell by more than 32 cents to roughly $2.14, and importer margins fell by five percent.

She says the Government cannot control international fuel prices.

"However, we can ensure that there is good competition locally, and address underlying concerns the Government has around margins and pricing variability."

Marcus Lush Nights

Marcus Lush Nights

8PM - Midnight