Petrol companies are pushing back on the Prime Minister’s claim that New Zealanders are being “fleeced” at the pump.
In response to petrol prices hitting record highs, Prime Minister Jacinda Ardern said the Government would rush through changes to the Commerce Act to allow the Commerce Commission to investigate the margins on fuel. end quote:
As I said before, this is all just a ploy to make the government look as if they are concerned, when they couldn’t care less. The investigation (for that, read another Working Group) will not produce its report for about a year, by which time we will all have forgotten about the government’s caring face. But it makes them look good – to their media sycophants anyway. quote:
But Gull general manager Dave Bodger told RNZ the market was competitive and its prices were fair.
“From Gull’s point of view, we’re well known for having some of the best prices in the market, so I don’t believe we’re fleecing anybody at all.”end quote.
Gull has generally offered considerably lower prices to consumers, so this is a fair comment on their part. The other oil companies have chimed in too. quote:
In a statement, Z Energy boss Mike Bennetts said it disputed that prices were “unjustifiably high” and disagreed that customers were being fleeced.
“Z believes the fuel market is highly competitive, but the way to satisfactorily demonstrate this and give consumers the confidence they need is to have the level of transparency that a market study can bring.”
Bennetts said Z’s profit margin was not the reason for the price surge.
“Z will release its half year financials in early November. We look forward to sharing an audited, accurate view of our profits with the public then.” end quote.
A little warning for the Princess. If an oil company welcomes the idea of a market study, believe me, you are in trouble.
This could be the reason why she may be in trouble.
Photo credit: Wilson
Yes, it seems the government gets $1.516 from every litre of petrol. This figure includes GST, of course, but that is tax as well.
I was just listening to the radio and heard that the AA says that recent fuel price hikes are the result of product costs and tax – not fuel company margins.
This is why the Princess needs to bury this matter in a study which will take months to report back. She will rush legislation through parliament in a grand gesture to make sure everyone believes she cares. Then the Commerce Commission can take as long as they want over it. She has shown the kind face of her government and now she can walk away, thinking we will all forget about it in a few weeks.
The cost of fuel affects the price of everything. Everything will soon start to go up in price. We could be looking at the highest inflation rate in a decade soon – long before the Commerce Commission’s report comes out.
And once again, it is the poor – you know, the ones who vote for these clowns – who will be affected the most.
Prepare yourself for the backlash, Cindy. This is one situation that fairy dust won’t fix.