Repeated cuts in the cost of fuel in recent weeks - to the lowest levels since September last year - has the AA perplexed.
AA petrolwatch spokesman Mark Stockdale has questioned whether the declines are linked to the pending release of the fuel price inquiry report, by Energy and Resources Minister Judith Collins, scrutinising the fuel companies’ increasing margins.
Ms Collins’ office said yesterday the report would be released, as scheduled, this month, but did not have a date set.
Last February, Ms Collins launched the inquiry into fuel suppliers’ profit margins, given a disparity of more than 20c per litre in petrol prices around the country at the time.
She said at the time she was concerned about the margin between the imported cost of fuel and the retail price, which had been "steadily increasing" over several years.
"We need to know why this is happening and determine if what people are paying at the pump is reasonable or whether the [fuel] companies are making super-normal profits," Ms Collins said in February.
The AA has been calling for an inquiry and transparency on profit margins since early 2015, noting there had not been a retail inquiry since 2008.
Mr Stockdale said whatever led to the latest price drops, it was another unexpected price reduction and was "atypical behaviour" by the fuel companies.
That behaviour only reinforced the AA’s view that the fuel companies wanted their margins to look a lot lower than what the pending Government study will report on.
"We can’t help but think that fuel companies are positioning margins in anticipation of the release of the government inquiry into fuel prices, which is due at the end of this month," Mr Stockdale said.
He said monitoring of commodity prices, as at Tuesday, showed there had been no reduction in the cost of refined fuels since the last price cut, and there had been no drop in the landed cost of fuels to explain it.
"Although oil prices have fallen $US2 per barrel overnight, perhaps whichever fuel company led the drop is anticipating that will flow through to lower refined prices, which is not guaranteed," he said.
Z Energy spokesman Jonathan Hill yesterday defended the price cuts, labelling Mr Stockdale’s claims "nonsense".
Mr Hill said the price of refined fuel was down 12%, crude oil by 10% and the New Zealand dollar had gained 2c against its US counterpart, the three elements having prompted Z’s past four price cuts.
"There’s nothing different going on with pricing at all. It’s the same as usual."
There have been three separate 3c cuts to the cost per litre during the past week, and 91-octane fuel was down to $1.85.9 in Dunedin yesterday.
BP had dropped fuel 13c during the past two weeks, including 2c yesterday. BP corporate and external affairs manager Leigh Taylor said further decreases in product costs, with international supply exceeding demand, had enabled BP to pass on the savings.
A spokesman for Mobil said its fuel prices were influenced by several factors, including product cost, exchange rates, transportation, retailing costs and local market competition.
"Within New Zealand, motorists are increasingly benefiting from discounts off the advertised board price, such as those offered via loyalty programmes, in-store promotions and supermarket vouchers," he said in a statement.
New Zealand continued to be a "very tough, competitive" petroleum market, he said.
