21/04/2015 - General News
Z Energy today released an independent report that shows fuel prices in New Zealand fall as quickly as they rise.
Z Chief Executive Mike Bennetts said following public comment over the last four months that fuel companies were quick to raise prices and slow to drop them, Z had commissioned the New Zealand Institute of Economic Research (NZIER) to update its 2013 report on the topic.
“We understand there’s a high level of public interest around fuel pricing and Z believes our customers and stakeholders deserve impartial and independent facts on the matter.
“I want to be clear that Z had no input into, or review of, this report whatsoever prior to its publication. We felt it was important that there were facts in the public discussion around fuel pricing,” he said.
The report states that “petrol companies pass on oil price decreases to consumers just as quickly as they pass on increases in prices”. The report also notes that “the speed at which oil price changes end up in retail prices – both ups and downs – has accelerated and become more volatile. From a consumer perspective these dynamics are positive. These results suggest that competition has become more robust”.
Mike Bennetts said the last 12 months had seen the most sustained and vigorous competition in the fuel markets in Z’s five year history as a local company.
“Consumers reading this report can be assured the market is highly competitive and that prices rise at the same speed as they fall.”
Mike Bennetts said a further reference point for consumers and stakeholders would be Z’s release of its annual result on May 7.
“We will release to the markets detailed analysis around our profitability and performance. Our financial results will be fully audited and open to the scrutiny of anyone with an interest in this industry,” said Mike.