KEY POINTS:
Savage fuel price rises over the past month have spurred the Government to look at requiring oil companies to give advance warning of more pain at the pumps.
Commerce Minister Lianne Dalziel hopes to meet the Automobile Association today to examine its call for an inquiry into the
pricing structure of the fuel market.
Ms Dalziel said last night that there was concern among New Zealand motorists that oil companies appeared quick to pass on international price rises but slow to respond to falls.
She returned on Friday from talks with the head of Australia's competition commission, over fuel prices, and the appointment there of a "petrol commissioner" - a watchdog on oil pricing.
Ms Dalziel said she had asked officials to examine a report she had brought back with her from Australia for lessons which may be applicable on this side of the Tasman.
That could include replicating a system in place in Perth, and due to be extended to the rest of Australia in December, by which oil companies must provide advance notice of each day's petrol prices.
They are then forbidden from changing their prices until the next day.
The minister said that though New Zealand had the fifth lowest petrol prices of the 27 countries in the Organisation for Economic Co-operation, preliminary discussions with the AA suggested there may be scope for improving the Ministry of Economic Development's weekly monitoring.
AA motoring affairs head Mike Noon said it was too soon to tell whether an Australian-style fuel-watch system was needed here.
"New Zealand motorists have a suspicion Australians are getting a better deal on prices - let's find out if this is true," he said.
"Motorists have been hit hard by the record fuel prices and are increasingly distrustful of oil companies which continue to announce international record profits at levels beyond comprehension."
These include an expected after-tax yield of US$36 billion ($46 billion) by Shell and US$32 billion ($41 billion) by BP.
An Australian Government website put its latest average main-centre petrol price at just over A$1.45c ($1.75c), about 14c less than this country's $1.89c for the 91-octane grade.
Mr Noon said the AA believed the oil companies had done "a pretty poor job" of explaining their price changes and that the ministry could improve the frequency and quality of its monitoring.
Public disquiet here had risen in the past month of almost weekly prices rises, peaking over Anzac weekend with the gap of 5c a litre for 91-octane petrol between what BP was charging at the high end and what industry minnow Gull was able to offer.
But Gull general manager Dave Bodger indicated concern about the Australian system, saying he understood extra administration costs outweighed any price savings.
Meanwhile the Government has also given a stronger indication it will delay parts of its emissions trading scheme because of the increasing pressure on drivers' pockets.
The scheme is expected to add from 5 to 8 cents to the price of a litre of petrol from January 2009 and 4 per cent to power bills from 2010.
