The Motor Trade Association (MTA) is welcoming the release of the Commerce Commission’s draft report on retail fuel market competition.
MTA chief executive Craig Pomare says the report’s findings confirmed the concerns raised by the association.
”A serious lack of competition at the wholesale level and inflexible contracts that prevent resellers switching suppliers were two major concerns we highlighted in our submission,” Pomare says.
“We’re delighted that these two issues are key parts of the Commerce Commission findings.
“Quite frankly, we’re pumped with what we’ve seen today.”
MTA will now review the preliminary report in detail and looks forward to working with the Commerce Commission to finalise the report and its recommendations, Pomare says.
He says he hopes the release of the report will now see an end to the emotive language and finger pointing associated with fuel pricing.
“Generalisations about people being ‘fleeced’ are not helpful and just inflame the situation.
“We’re aware of members and their staff who have been verbally abused in the wake of those sorts of comments.
“What the Commerce Commission’s report does do is shine a light on where the real problems in the retail fuel market are, and they are not caused by the retailers.
Pomare says the other factor in pricing that shouldn’t be forgotten is tax, which currently makes up around 50% of the price of a litre of petrol.
