Fuel Market Financial Performance Study 2017

In 2017, MBIE undertook a Fuel Market Financial Performance Study.

A group of external consultants comprising NZIER, Grant Thornton and Cognitus Economic Insight undertook the Study on MBIE’s behalf. The Study was undertaken following concern that a trend of steadily rising importer petrol and diesel margins since 2008 may indicate that retail customers in New Zealand are not paying reasonable prices for petrol and diesel. The Study was also prompted by the emergence of significant retail fuel price variations between regions in New Zealand.

The Study’s primary conclusion is that “we cannot definitely say that fuel prices in New Zealand are reasonable, and we have reason to believe that they might not be.”

See the final report and other information below.

 

Report-back on Fuel Market Financial Performance Study 2017

In June, Cabinet directed MBIE officials to assess the findings and recommendations of the Fuel Market Financial Performance Study and report back to the Minister of Energy and Resources.

Download the report-back below, which includes the following annexes:

  • Previous fuel sector studies
  • Methods for calculating pre-tax premium petrol prices in the OECD
  • Submission from BP Oil New Zealand Limited
  • Submission from Gull New Zealand Limited
  • Submission from Mobil Oil New Zealand Limited
  • Submission from Z Energy
  • Hale & Twomey report: Supplementary Information on Shared Data
  • Hale & Twomey report: Supplementary Information on Wholesale Markets

Report-back on the findings and recommendations of the Fuel Market Financial Performance Study [PDF 10.2MB]

Read MBIE’s Q&A on the report-back

In this report-back, MBIE agrees with the authors of the Fuel Market Financial Performance Study that further examination of the sector is warranted, and that a market study led by the Commerce Commission, alongside supporting information gathering powers, would be the most appropriate vehicle to undertake this examination.