Subj : Consumer NZ slams petrol companies 'price gouging, overcharging'
To   : All
From : News
Date : Wed Jun 12 2024 01:18 pm

By 1News Reporters
9:26am

A Consumer watchdog has slammed the "appalling behaviour" of petrol companies
after the Commerce Commission revealed Kiwis are paying more at the pump for
longer than they should.

The Commerce Commission's analysis of fuel monitoring data showed retailers
were quick to increase fuel prices when costs went up, but slower to bring
prices down when global oil prices fall or exchange rate changes reduce costs.

Consumer New Zealand's Jon Duffy told Breakfast the analysis is a "really
clear signal from the Commission that they are watching" the tactics of
petrol companies closely.

"If the ComCom's analysis is correct, and there's no reason to assume it's
not, this is pretty appalling behaviour by the petrol retailers. Particularly
in a cost-of-living crisis to be effectively price gouging for the amount of
time that they are . it's pretty appalling behaviour."

He said the $15 million estimated to have been lost by consumers is a
"conservative, safe" figure that is likely to be higher than that in reality.

"I was actually surprised that it was only $15 million, I would have thought
it would be higher given the cost of petrol," he said.

In a statement yesterday Z Energy said it was "committed to ensuring our
customers get a fair deal at the pump" and said it does its best "to moderate
the impact on customers, a bit like a shock absorber".

Duffy said he does not accept this as an excuse and called it a "common
narrative from big companies in markets that have low competition".

"They hide behind the narrative that pricing is complex, and as consumers you
wouldn't really understand all the complexities that go into the pricing that
you end up paying at the pump, or at the supermarket, or at the bank or
whatever the market is.

"What we've got here is an analysis by the Commerce Commission that says no
that's not actually true. You are gouging people; you are overcharging, and
you should have dropped your prices earlier."

Hipkins says it's 'good' heat is applied to petrol companies
Labour Leader Chris Hipkins said he thought it was a positive thing that the
Commerce Commission were monitoring fuel prices.

"I think it's good that they're putting a bit of heat on the petrol
companies," he said.

"While they increase prices pretty fast while their costs go up, they need to
be reducing them just as fast when their costs go down.

"This is really a time for the oil companies to be sent a pretty clear
warning."

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