Z Energy is disappointed at the findings of a government study into the state of the fuel market.
In its latest quarterly update, the fuel giant says the Ministry of Business, Innovation and Employment research provided inconclusive results.
“The study was inconclusive owing to incomplete data from nominated participants, failure to engage with most of the industry participants and insufficient consideration for fundamental issues such as the reasonableness of profits (not just gross margins) and returns,” it says in the update.
Energy and resources minister Judith Collins used the study as an opportunity to suggest the petrol industry may have “features which may not be consistent with a workably competitive market.”
Z says it plans on engaging constructively with officials and the minister over the issue.
“Z is confident that a well-resourced and independent study would clearly demonstrate that industry profits and returns are reasonable against international and domestic benchmarks.”
Meanwhile, Z also notes its fuel sales have risen year-on year from 2.117 million litres of fuel in June 2016 to 2.217 million litres in June 2017.
However, that’s down from 2.43 million litres of fuel sold in March 2017.
