A more competitive market and lower fuel prices will result from the Fuel Industry Bill passed into law overnight by Parliament, says energy and resources minister Megan Woods.
The legislation adopts recommendations made in the Commerce Commission’s Government-ordered fuel market study.
“The study found motorists were being short-changed on the price of petrol over the past decade because of a lack of competition,” says Woods.
“(The new legislation) will allow smaller players to gain access to cheaper fuel which will mean other retailers will need to adjust their prices or risk losing customers.” That’s expected to push prices down.
The act sets up a terminal gate pricing regime to improve competition in the wholesale market by making it easier for a fuel reseller to access fuel more cheaply and in more locations.
It includes rules to ensure contracts between wholesale fuel suppliers and their wholesale customers are fair and support competition.
Service stations will have to display the price of premium fuel on their forecourt price boards.
