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Home / New Zealand

Impact will be positive for motorists, says expert after Z adds premium to price displays

Luke Kirkness
By Luke Kirkness
Sport Planning Editor·NZ Herald·
18 Dec, 2019 02:30 AM2 mins to read

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Mark Stockdale says the AA expects fuel prices to fall at pumps around the country. Photo / File
Mark Stockdale says the AA expects fuel prices to fall at pumps around the country. Photo / File

Mark Stockdale says the AA expects fuel prices to fall at pumps around the country. Photo / File

Premium fuel prices will start falling after one retailer changed how it advertised its prices last week, an industry expert says.

On December 5, the Commerce Commission recommended fuel stations be forced to display premium fuel prices on price boards.

Z Energy responded just over a week later by erecting its first price board with all fuel grades, including premium, at Z Beach Rd in Parnell, Auckland.

READ MORE:
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Andy Baird, the Z general manager of retail, said it was committed to rolling out the boards across its 340 sites, including Caltex, within the next six months.

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"Solving this issue is something that all retailers can and should do quickly."

Meanwhile, the change would have a "significant, positive impact" AA petrolwatch spokesman Mark Stockdale told the Herald.

Z Energy hopes to roll it out to the remainder of its stations, including Caltex, within six months. Photo / File
Z Energy hopes to roll it out to the remainder of its stations, including Caltex, within six months. Photo / File

Around 20 per cent of petrol sold in New Zealand was premium and motorists had been paying upwards of 20 to 40 cents more for it than for 91 octane fuel.

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"By displaying the price, the AA believes the price of premium petrol will fall. This is going to have a real impact by simply displaying the price," Stockdale said.

"Because the price [of premium] isn't displayed there isn't a competition - the prices are higher than there otherwise would be if there was competition."

Earlier this month, Consumer Affairs Minister Kris Faafoi said proposed law changes would see the price of fuel plummet by between 18-32c.

It followed the Commerce Commission's recommendations major petrol suppliers change how the wholesale fuel market worked, to improve competition.

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Stockdale wasn't sure exactly what impact increasing the wholesale competition would have but the price board change would see immediate change.

"With Z deciding to display that price, we're going to see a drop now and the more service stations that start doing it, the sooner motorists will benefit," he said.

"This is starting to have an impact now and it's only been a fortnight since the report."

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