Retail petrol prices ‘reasonably reflecting’ changes in import costs - ComCom

Rising petrol prices are “reasonably reflecting” changes in costs of importing fuel, the Commerce Commission says. 

It comes as Kiwi motorists have been hammered by higher prices at the pump over the past couple of weeks. 

Commissioner Bryan Chapple said they continue to provide fortnightly reports on fuel prices in response to the Middle East conflict. 

“This reporting shows retail pricing is reasonably reflecting changes in the costs of importing fuel,” he said. 

“It also shows cost price spreads are in line with past years, meaning that prices are not systematically rising faster than they fall in response to changing import costs.” 

Chapple said the commission’s role was to monitor competition in fuel markets, not regulate or set fuel prices. 

“Where we see pricing outcomes that appear inconsistent with effective competition, we investigate and report on those findings. 

“More broadly, we can take enforcement action where we see misleading pricing in breach of the Fair Trading Act, or anti-competitive behaviour in breach of the Commerce Act.” 

The commission put fuel retailers on notice in June to ensure lower costs are passed through to customers at the pump. 

The competition watchdog said it was reasonable for businesses to adjust their prices in response to higher and more volatile global wholesale prices during the Middle East conflict. 

“We expect to see decreases in global costs passed through to prices at the pump in the same way the increases have been,” it said at the time. 

The average price of unleaded 91 has soared to its highest level since April, sitting around $3.41 a litre this morning, according to Gaspy. 

Over the past 28 days, it’s up more than 47 cents or 16%. 

Unleaded 95 has risen more than 15% over the past 28 days to $3.58. 

Meanwhile, diesel is up more than 51 cents over the same period to $3.15. 

In some places petrol has surpassed $4 a litre. 

On Waiheke Island yesterday, unleaded 91 was $4.04 at BP. 

“We understand people are feeling the cost of increased fuel prices, particularly in more isolated locations,” Chapple said. 

“Unfortunately, declining demand, difficult access, and the need to recover fixed costs are particularly acute challenges for more remote locations. These are often coupled with weaker local competition, especially where there are few fuel stations.” 

Brent crude was trading around US$106 ($187) a barrel overnight, up from around US$76 in early August.