Petrol retailers face new rules for pricing displays

(Source: Bigstock)

New Zealand petrol stations must now prominently display standard prices for all engine fuels they sell after new rules took effect today, (February 11). 

The move was introduced after a market study by the Commerce Commission in 2019 found a number of shortcomings in the competitiveness of fuel markets. 

“One of our findings at the retail level was that many stations didn’t display the prices of premium fuel, which made it harder for motorists to shop around and understand the prices that different fuel retailers were offering,” said Anna Rawlings, Commerce Commission chair.

“The new rules are designed to provide better visibility of all prices for motorists. They will also level the playing field for retailers and improve competition for customers looking for a better deal at the pump.”

The first phase of the Act came into effect last August and promotes competition at the wholesale level to allow retailers to access fuel at competitive prices. 

“The full impact of the changes won’t yet be felt at the retail level, but over time we expect they should have a positive impact on competition at wholesale and retail levels of the fuel supply chain,” she said.

Wholesale distributors will be required to disclose a range of information to the Commerce Commission including costs, prices and sales volumes. Further requirements will come into effect later this year and will require wholesale suppliers to be transparent with their contract terms and pricing methods. It will apply to all new contracts from August 11.

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