The cost of fuel at the pump is made up of four parts
1. Product cost
What we pay to buy refined fuels (i.e petrol and diesel) from international refineries and the cost to ship it to Aotearoa New Zealand.
2. Government tax
This includes Government taxes such as GST, the Fuel Excise Duty and levies such as ACC and the emissions trading scheme.
3. Operating costs
The costs we incur to bring fuel to customers, like maintaining storage tanks, local distribution via trucks and tankers, electricity to power our stores, right down to the credit card fees we pay the banks to take electronic payments, and the costs to train and employ over 1,500 Kiwi at Z stations across Aotearoa New Zealand.
4. Net profit
Our net profit is what we earn after we’ve paid for the refined fuel, taxes and levies and accounted for our operating costs. Our calculations on net profit are stated after corporate tax. In FY23, our replacement cost net profit was 3.09 cents per litre.
Good, honest answers
Here are the answers to some of the most common questions we get from Z customers.
If you're wondering about something that's not listed below, give us a ring on 0800 474 355 or contact us. You can also reach us on Facebook .
How do you decide how much to charge for fuel on any given day?
The cost of fuel at the pump is made up of a number of factors. Pricing on the global market fluctuates daily, as can local competitive pressures, therefore Z continually reviews the range of input costs and market conditions daily and makes any changes (up or down) as and when we need to.
Why doesn't Z drop the price at the pump when the price of crude oil drops?
Z buys refined fuel on the international market, not crude oil, and decisions we make regarding any price changes are based on multiple price inputs, not just the price we pay for refined fuel. When you’ve got external factors like the oil price moving around a lot, we do our best to moderate the impact on customers.
We are committed to ensuring our customers get a fair deal at the pump and keep a close eye on the market to remain competitive.
Why is there a difference in fuel prices at different Z stations?
Z’s fuel pricing is localised. What this means in practice is that prices can be different at service stations within regions or even the same towns based on a range of factors such as varying local competition and local costs to serve the market. At Z, the prices are set by head office not by the individual service stations.
Why can't you just lower the cost of fuel?
While we can’t always lower the price of fuel, we can show Kiwi where the best Z pump price is within the local area, through Sharetank on the Z App. Sharetank shows you the cheapest Z pump price within a 30km radius and allows you to bulk pre-purchase fuel (up to 1,000 litres of any grade, i.e. 91, 95 or Diesel) at that price.
You can then share that great price with up to five people, or keep it for yourself, and redeem those litres at any Z station across Aotearoa New Zealand at the price you paid, regardless of what is shown on the pump at the service station you refuel at.
An app like Gaspy can show you prices in your area to help you find a price that is good for you.