The Commerce Commission has taken legal action against Mobil New Zealand’s head office for pricing methods that it believes breach the Fuel Industry Act 2020 (the Act).
The Commission has filed proceedings in the High Court, alleging two ongoing breaches of section 16(1)(a) of the Act, one starting in November 2021, and the other in August 2022.
“We think that the wholesale prices methods Mobil New Zealand’s head office has used to calculate what they charge petrol stations (dealers) aren’t transparent enough to meet their obligations under the Act,” said Commissioner Bryan Chapple.
“The purpose of the Act is to improve competition in the fuel market for the long-term benefit of consumers, and so we take any suspected breaches very seriously.”
Chapple said that a lack of transparent wholesale prices means independent petrol stations can’t see or question the rates Mobil charges them. The flow-on effect is that Mobil head office can increase prices with minimal pushback, putting pressure on retail prices set by petrol stations.
One way the fuel market in New Zealand operates is through large international companies, such as Mobil, importing fuel and selling it at wholesale to independent dealers who own and operate petrol stations. Many dealer-owned petrol stations use the branding of larger companies, such as Mobil, but are run independently.
The proceedings the Commission has filed concern Mobil’s wholesale operations, which affect independent dealers and, ultimately, consumers.
“A lack of pricing transparency for dealers makes it harder for them to offer the best prices for their customers.”
More from the c-store here
