The public has been urged to report surges in fuel prices. Photo / 123RF
Fuel retailers using global uncertainty to hike fuel prices are “gouging the public” and should be reported to the Commerce Commission, Resources Minister Shane Jones warns.
Petrol prices surged noticeably across the country this week, with some stations hiking 95-grade prices by as much as 19c to more than $3 per litre – as the volatility in international oil markets continues amid Mideast conflict triggered by the US and Israeli bombing of Iran.
Jones said he was aware some operators had already lifted pump prices despite using fuel that was already in the country, and urged consumers to act if they believed they were being exploited.
“Any service station exploiting the current uncertainty to gouge the public … people should make their complaints directly to the Commerce Commission, which has extraordinary powers to punish egregious market behaviour,” he said.
His comments come as average national fuel prices have climbed over the past 28 days. Statistics from the independent online fuel price watchdog Gaspy for Wednesday morning, March 11, showed:
Jones linked the volatility to international pressure on refined‑fuel supply, saying New Zealand is now dependent on refineries whose feedstock comes “utterly” from the Persian Gulf. Formerly, the Marsden Pt refinery, near Whangārei, drew crude oil from “a host of different sources”, providing a buffer New Zealand no longer has.
Jones has been intensely critical of the previous Government’s approval in 2022 of the mothballing of Marsden Pt, saying it “fatally wounded” New Zealand’s fuel resilience.
He said rebuilding the refinery was prohibitively expensive. However, he noted that the facility still holds the largest fuel‑storage capacity in the country, with about 300 million litres in use and the potential to nearly double that, which he said was significant for Northland and national fuel security.
He said New Zealand will need to store more fuel in future to counter the oil companies’ “just‑in‑time” model, which has reduced resilience.
Public concerns over apparent price gouging have dominated discussions about higher fuel prices this week.
While Northland pump prices have generally tracked the national increases, the beachside community of Mangawhai continues to enjoy some of the country’s lowest fuel prices – an oddity Gaspy director Mike Newton has reportedly put down to the opening of a self-service Gull station there last September.
“They’ve had it really good, pretty much since then. They’ve just steadily been 20 cents lower than that national average, which is pretty impressive, especially for Northland. I don’t think they’ve generally had it that good,” Newton told RNZ early last month.
The Northern Advocate spoke with representatives from the other two stations in the township, neither of whom wanted to comment on whether the local price competition would continue regardless of the overseas situation and how that might affect supply and pricing in New Zealand.
This week’s Gaspy data shows an interesting turn among the three stations, which on Tuesday, all featured on a list of the country’s top five cheapest stations.
Mobil Mangawhai had the nation’s cheapest 91 at $2.32 per litre, followed by g.a.s. Mangawhai at $2.35, and Gull Mangawhai, $2.40.
By this morning, the lineup had changed, with Gull Mangawhai leading the list at $2.40 per litre for 91, with Mobil Mangawhai in second place at $2.45 per litre. G.a.s. Mangawhai had dropped away, having upped its price for 91 by 20 cents overnight to $2.55 per litre, albeit the increase is partly offset for True Rewards loyalty scheme members, who currently get 15 cents off per litre.
Meanwhile, in the Whangārei district, where more than 30 verified fuel sites make for one of the most diverse and dense fuel networks in regional New Zealand, the cheapest fuel on offer on Wednesday was at New World ($2.62 per litre for unleaded 91). Many other suppliers were at least 30 cents more expensive.
At Kaitāia in the Far North, unleaded 91 ranged between $2.75 and $2.92 per litre.
Mobil Kaitāia station, which a staff member told the Northland Age had increased its prices this week by about 10c across its range of fuels, ran out of unleaded 91 and diesel for part of the day on Wednesday.
The staffer told the Northland Age the shortage was because of a trucking delay in the morning and had been boosted by this week’s 90 Mile Beach Snapper Bonanza event, which draws a huge crowd of out-of-town fishers every year.
At Ahipara, 13km southwest of Kaitāia, the only fuel retailer, g.a.s, was today charging $3.08 per litre.
Sarah Curtis is a news reporter for the Northern Advocate, focusing on a wide range of issues. She has nearly 20 years’ experience in journalism, most of which she spent court reporting in Gisborne and on the East Coast.