The Commerce Commission will increase its monitoring of fuel companies to ensure price rises are justified and “will not hesitate” to publicly call out unwarranted increases.
Commissioner Bryan Chapple explained that enhanced reporting frequency will enable the commission to address worrying pricing practices, both publicly and in direct communications with fuel companies.
Chapple described public scrutiny as a “powerful tool” and affirmed, “We will use it.”
“Nobody wants to see fuel companies using the situation in the Middle East as an excuse to unjustifiably increase prices at the pump,” he said.
“Any retail price increases should be aligned with actual increases of sourcing fuel. I have communicated that message directly with fuel companies.”
The Commission neither sets nor controls fuel prices, but it monitors activity, reports on it, and enforces accountability through transparency and scrutiny, promoting competition and truthful pricing representations.
The Commission’s website will host reports that track retail fuel price movements and benchmark them against variations in fuel import costs.
Chapple urged Kiwis to shop around and check prices.
The Commission’s initial aggregate analysis identified no current concerns.
ComCom would also examine regional pricing variations, keep tracking price movements, and call out any apparently unjustified pricing behaviours.
Chapple said adding a fuel surcharge to a product or service is legal, provided the business is transparent about it and explains its purpose upfront.
“We expect businesses to do the right thing, and they must be honest about the reasons for any price increase.”
He urged anyone suspecting a business of misleading explanations for price hikes to report it using the “raise a concern” feature on the Commerce Commission website.