Motorists and smaller fuel companies are set to benefit from a more competitive market as new regulations, including terminal gate pricing, take effect from today,” says Energy and Resources Minister Megan Woods.
“A terminal gate pricing regime will improve competition in the wholesale market by making it easier for fuel companies to access fuel more cheaply and in more locations,” Megan Woods said.
“Also among the suite of new measures, a dispute resolution scheme and rules to ensure contracts between wholesale fuel suppliers and their wholesale customers are fair.
“While prices have recently increased due to the rising price of crude oil I am certain that over time the impact of the provisions in the Fuel Industry Act will promote competition in fuel markets to make things fairer for kiwi motorists and smaller players in the market.
The regulations, beginning today, support legislation that was passed last year (The Fuel Industry Act 2020) after a Government-ordered fuel market study conducted by the Commerce Commission found that fuel companies had been making higher profits than expected in a workable competitive market.
“Margins on regular and premium petrol have reduced since the Government announced the market study and these regulations will make things more competitive with more measures still to come.
“A requirement for retail fuel sites to display premium fuel prices on forecourt price boards will come into effect by 11 February next year and regulations requiring fuel companies to collect and disclose certain information are currently being developed to assist with monitoring of the fuel market,” Megan Woods said.