Business with 2degrees: Mobil NZ faces legal action on wholesale pricing method; FIF tax creator calls for changes to support brain gain; review for plummeting mineral royalties.
The Commerce Commission is taking legal action against fuel company Mobil for the way it sets wholesale petrol prices.
The regulator has alleged Mobil breached fuel industry rules by not being transparent in the way it sets the prices for independent petrol stations.
Lawchanges in 2020 required fuel companies to disclose their prices, among other rules, to improve competition in the sector, with even-handed treatment between company-owned stations and independent retailers.
Commissioner Bryan Chapple said it believed Mobil has been breaching one rule since November 2021 and a second rule since August 2022.
“We think that the wholesale prices methods Mobil New Zealand’s head office has used to calculate what they charge petrol stations (dealers) aren’t transparent enough to meet their obligations under the Act,” Chapple said.
“The purpose of the Act is to improve competition in the fuel market for the long-term benefit of consumers, and so we take any suspected breaches very seriously.”
Mobil New Zealand. Photo / RNZ, Dan Cook
He said a lack of transparent wholesale prices meant that independent petrol stations were not able to see and question the rates that Mobil was charging them.
“The flow-on effect is that Mobil head office is able to increase prices with minimal pushback, putting pressure on retail prices set by petrol stations.”
He said Mobil, like other foreign-owned fuel suppliers, imported fuel and sold it to independent dealers who own and operate petrol stations, even though the independent retailers might use the foreign companies’ branding.
“A lack of pricing transparency for dealers makes it harder for them to offer the best prices for their customers,” Chapple said.
The maximum penalty is $5 million for each breach.
