The Commerce Commission says it is increasing scrutiny of petrol pump prices as global wholesale fuel costs become more volatile.
Commissioner Bryan Chapple says the regulator will increase the frequency of its reporting and publicly highlight any pricing behaviour that raises concern.
“Public scrutiny is a powerful tool and we will use it. Nobody wants to see fuel companies using the situation in the Middle East as an excuse to unjustifiably increase prices at the pump.
“Any retail price increases should be aligned with actual increases in the cost of sourcing fuel. I have communicated that message directly with fuel companies,” Chapple says.
The Commission says it does not set fuel prices and does not have powers to control them. Its role is to monitor the market, report on pricing trends and promote competition through transparency and accountability.
Reports published on the Commission’s website will track retail petrol price movements and compare them with changes in the cost of importing fuel.
“We want consumers to feel confident that petrol price increases are justified and that decreases in global costs are passed through to retail prices as quickly as the increases have been,” Chapple says.
Motorists are also being encouraged to shop around and compare prices using tools such as the Gaspy app.
The Commission says its initial aggregate analysis has not raised immediate concerns.
“The gap between rising international costs and slower retail movements aligns with patterns seen during previous global shocks but it is not a licence for fuel companies to increase prices excessively,” Chapple says.
The regulator will also examine variations in regional pricing and continue monitoring the market for behaviour that appears unjustified.
Alongside its monitoring work, the Commission is reminding businesses to be transparent when applying fuel surcharges.
Chapple says businesses can apply a fuel surcharge provided they clearly disclose the charge and explain what it relates to.
“We expect businesses to do the right thing, and they must be honest about the reasons for any price increase.
“We encourage anyone who believes a business has been misleading about the reason for a price increase to report it via the ‘raise a concern’ function on our website,” he says.
The Commission says its monitoring has previously helped improve competition in areas such as Thames and Waiheke Island by increasing transparency around pump prices.
Fuel market regulation operates under the Fuel Industry Act 2020, which aims to promote competition in engine fuel markets for the long-term benefit of consumers.
While high prices alone are not illegal under the Fair Trading Act 1986, misleading or deceptive conduct and false representations about pricing may result in enforcement action.
