Government ‘concerned’ about petrol prices…

by Christie on October 9, 2018 at 8:00am

The government that increased petrol prices significantly by imposing fuel levies in July has decided to rush through legislation to look into petrol price margins… you seriously could not make this stuff up.

Stuff reports: quote:

The Government will rush through changes to the Commerce Act to allow the competition watchdog to investigate the margins on fuel, as the pump price hits a record high.

Prime Minister Jacinda Ardern announced the move at her post-cabinet press conference, saying consumers were being “fleeced” at the pump. end quote.

Yes. Like the unfortunate sheep that we are, we are being fleeced all right. We are being fleeced by this government – first of all, because of their fuel levies and GST, and secondly by an incompetent government that has caused a fall in business confidence which has flowed on to a dollar that has dropped significantly, causing further hikes in the price of imported fuel.

And don’t forget the decimation of our own oil industry. It may not be directly responsible for this, but it definitely doesn’t help.


They are also a government that hates business, so it must all be the fault of the fuel companies. quote:

The previously-announced legislation will be passed in the first two weeks of sitting in late-October. Prime Minister Jacinda Ardern will then nominate that the retail fuel industry is the first to be investigated by the Commerce Commission. end quote.

The thing is, we have been here before, it is nothing more than a cynical move by the princess to take the heat off the government by pretending they are going to do something about it. They won’t. quote:

“The study I anticipate will report back next year and I will prioritise a response to it,” Ardern said. end quote.

Next year? Will that be January? July? November? See what I mean? It is months away. quote:

“I am hugely concerned at the level of price that consumers are currently paying at the pump for fuel.” end quote.

Then roll back the petrol taxes. That will make a big difference and do something about the falling dollar because that will make a big difference too. quote:

“In 2008 we had one of the lowest pre-tax costs for fuel in the OECD. Today we have the highest in the OECD.” end quote.

We also have the highest rate of fuel taxes and levies that we have ever had. Funny how that just gets brushed aside. quote:

Ardern said the importer margin on petrol climbed from 7 per cent of the price of petrol in 2008 to 16 per cent in early 2018.

“That increase represents a transfer of wealth from petrol consumers to producers to the tune of hundreds of millions of dollars a year,” Ardern said. end quote.

2008 was the beginning of the GFC. Everything was in freefall. What about the ‘transfer of wealth’ to a government that is robbing us blind? Nothing to see here. Move along.quote:

“Consumers, in my book, are being fleeced.” end quote.

Oh yes, we are, Princess, and it is not just by the fuel companies. quote:

National leader Simon Bridges described the move as “yet another inquiry” and called on the Government to axe its fuel tax increases.

“She’s saying consumers are being ‘fleeced’ while her Government is driving up fuel prices and taking hundreds of dollars from Kiwi households through higher taxes on fuel.”

Bridges added that “National supports another look at the practices of fuel companies”. end quote.

Don’t forget, that as fuel prices rise, so does the GST take on petrol as it is charged at 15% of the final pump price. This all represents an unexpected windfall to the government.

Jacinda is very good at talking the talk, but that is the only thing she can do. She held a press conference, looked concerned, pretended she cared, and then walked away and the results won’t be known for months on end.

This is the government that is bringing kindness back. The trouble is, those on low incomes will never benefit from it.

Maybe she is looking at nationalising the fuel companies. That worked really well in Venezuela, didn’t it?