Z Energy : supports market study legislation

Z Energy is pleased to hear that the Government will expedite the passing of legislation to enable a fuel market study to occur sooner rather than later.

Z Chief Executive Mike Bennetts acknowledged that consumers feel hard hit by fuel prices and that they are seeking assurance.

'Consumers are seeking assurance that prices are fair and the market is competitive and we believe that a Commerce Commission market study is the most sensible way forward. It's important to have an objective agency who can compel data, with people who have the skills and knowledge to interpret that data and investigate the market fully,' said Mike.

Z disputes that prices are unjustifiably high, and while margins have increased from an unsustainable level in 2008 which saw fuel majors exit New Zealand, it has not increased at the level suggested.

Current pump prices have been driven up by increasing crude oil costs, a weakening exchange rate and additional taxes, not Z's profit margin.

'As a listed company, Z will release its half year financials in early November. We look forward to sharing an audited, accurate view of our profits with the public then.

'Z believes the fuel market is highly competitive, but the way to satisfactorily demonstrate this and give consumers the confidence they need is to have the level of transparency that a market study can bring,' said Mike.

'Z cooperated fully with the MBIE led market study, and we will cooperate fully with the Commerce Commission,' said Mike.

Media contact: Sheena Thomas 027 551 2589