MTA says service stations not ‘fleecing’

The Motor Trade Association is concerned that service station staff are being verbally abused by motorists angry at rising petrol prices.

MTA members include owners and independent operators of several hundred small service stations around the country.

MTA Chief Executive Craig Pomare says the biggest influences on prices at the pump are the landed refined price of petrol and diesel, taxes, and the value of the NZ dollar against the USA dollar.

“Competition also has a big effect in New Zealand.  It is well recognized that the deregulation of the market and the emergence of Gull, and other smaller independents such as Challenge and G.A.S. have affected prices in the areas where they operate. So too has the widespread use of discounting.”

Mr. Pomare says the independent fuel retailers have minimal control over their daily pump prices.

“Most of these small businesses have contracts with the oil companies which give them very little wriggle room when it comes to setting their pump price.

“We take issue with the Prime Minister for suggesting that service stations or oil companies are ‘fleecing’ motorists.  Last year’s review of pricing by MBIE found no evidence of this. Like others in the sector, and the public, we support a further detailed market study to give us all more information on pricing structures.”

He says if the Government is seriously concerned, there is plenty of precedent for reviewing fuel taxes and either lowering them or holding off on further increases