Consumer concerns about fuel prices are being acted on, energy and resources minister Megan Woods says.
She’s asking the Ministry of Business, Innovation and Employment (MBIE) to further investigate fuel prices.
Commerce and consumer affairs minister Kris Faafoi is seeking fast-tracking of progress on broad market studies powers for the Commerce Commission to compel companies to provide information to fully understand how the markets are functioning.
Woods’ decision follows an update by MBIE on the Fuel Market Financial Performance Study released earlier in the year.
“The report highlights concerns about the price Kiwis are paying at the pump,” Woods says. “This was based on the rising levels of importer margins since 2008 and a rising spread of retail prices between Wellington and the South Island and the rest of the North Island.
“The update notes that over the last nine years, New Zealand has gone from having some of the lowest pre-tax fuel prices in the OECD to the highest. MBIE notes that the rise in margins since 2008 represents a transfer of wealth from consumers to producers to the tune of hundreds of millions of dollars,” Woods says.
Faafoi says he’s aiming to get legislation complete and to have market studies powers in place by the end of 2018.
“And the Commerce Commission also needs to be able to self-initiate these studies where they see that markets are not doing a good job for New Zealanders,” he says.
“Having thorough information and shining a light on a market enables us then as the government to decide if we need to take any action.”
Woods says she’s also instructed MBIE officials to continue to monitor the market and explore options for regulatory interventions to enhance competition as required.
The Automobile Association (AA) this week added its voice to the debate, urging fuel companies to cut prices at the pump ahead of the holiday season.
It noticed margins have crept up in the past fortnight and predicts the government could step in.
