Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

New Zealand Regulator Recommends Market Changes to Cut Gasoline Prices

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/04/2019 | 11:39pm EST

By Stephen Wright

WELLINGTON, New Zealand--New Zealand consumers are paying too much for gasoline, the country's competition regulator said Thursday, recommending changes that could lower prices.

Government ministers said they agreed with the Commerce Commission's findings and are ready to act on its recommendations.

The commission's study of the retail-fuel market found that over the past decade companies have made higher profits than would be expected if the market had been "workably" competitive.

"For consumers, this means they are paying higher pump prices," said Anna Rawlings, the commission's chief.

The regulator found that loyalty schemes are being used to avoid direct competition and an increasing difference between profit margins on regular and premium fuels that aren't explained by cost differences.

Taxes make up about 45% of the cost of gasoline at the pump in New Zealand. Importers' profit margins on retail fuels are about 18% for diesel and between 12%-15% for different grades of gasoline.

Among the several proposed changes is that New Zealand adopt a system used in Australia whereby fuel importers are required to offer a spot price at which to sell fuel to wholesale customers.

New Zealand's lack of a wholesale fuel market is the underlying reason for high retail gasoline prices, the regulator said.

The major fuel companies in New Zealand--Z Energy, BP PLC and Exxon Mobil--share infrastructure that includes the country's only oil refinery and supply 90% of the country's fuel through their retail gas stations.

The proposed changes will increase competition by allowing a spot wholesale market to develop and by lowering barriers to entering the industry, the commission said.

Write to Stephen Wright at stephen.wright@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC -0.24% 489.1364 Delayed Quote.3.98%
EXXON MOBIL CORPORATION -1.43% 67.58 Delayed Quote.-3.15%
Z ENERGY LTD End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
05:03aStocks shake off China virus worries, dollar gains
RE
04:55aEXCLUSIVE : Bank of America to hire 50 bankers for Asia dealmaking team in 2020 - sources
RE
04:41aUK government borrows less than expected in December, but corporate tax take weakens
RE
04:27aBlackRock, partners eye initial $500 million for climate fund
RE
04:24aEuro at one-month lows before ECB meeting; yuan fragile
RE
04:22aTIMELINE : Ted Baker's tale of management and accounting woes
RE
04:15aFrench fund HLD Europe in talks to buy control of Exxelia
RE
04:12aSaudi's crown prince denies Bezos phone hacking
RE
04:00aChina's Vital Materials emerges as mystery buyer of Fanya minor metal stocks
RE
03:49aS.Africa's Naspers raises $1.66 bln via Prosus share sale
RE
Latest news "Economy & Forex"