A leaked email has revealed pricing tactics in the petrol industry.
An email obtained by Stuff.co.nz shows BP’s pricing manager planning to tackle poor sales in Otaki by raising prices throughout the whole area.
Otaki fuel prices were up to 20 cents a litre more expensive than in nearby Levin and rather than lower the price, the plan was to raise overall prices and hope major rivals would follow.
The exact date of the internal email is not clear, although the strategy proved successful and also included stations in Paraparaumu and Kapiti.
“We have already increased all three sites mentioned by 5cpl [cents per litre] and have found that the Z [Energy station] in Paraparaumu has already matched our pricing,” the email says.
Energy Minister Megan Woods says the email is concerning and asked to meet with BP officials, Stuff reports.
“There’s strong public interest in making sure Kiwis are getting the best possible deal at the pump.
“It’s alarming to see evidence that suggests that’s not always happening,” Woods says.
Road Transport Forum chief executive Ken Shirley says the price spreading tactics are a window into the future of Auckland’s Regional Fuel Tax.
“We have all known for a long time what the fuel companies do to reduce price gaps and spread their pricing around the country.
“The email leaked to media only confirms how blatant that practice is.
“Unfortunately, in imposing a regional fuel tax on Auckland, Auckland Council and the Government have shown absolutely zero understanding of the retail fuel market and how prices are manipulated and massaged around the regions.
“It is obvious that what will happen come 1 July is that the fuel companies will spread the Regional Fuel Tax out around the country to soften its impact in the Auckland market.
“Already we have major price differences region-by-region so it will be almost impossible for NZTA to adequately police it.
“The Government would have been better off just increasing the general fuel tax, which is applied as a one-off transaction at the refinery, and specifically target that component to Auckland’s transport needs.
“An even better option would be accelerating the development of a fair congestion charging scheme for some of the city’s worst congested routes. That would be fair, equitable and truly regional,” Shirley says.
