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Media Release Fuel Study Hero4

MEDIA RELEASE 20 August 2019

The Motor Trade Association (MTA), which represents the owners of around 900 service stations, has welcomed the release of the Commerce Commission’s draft report on retail fuel market competition.

MTA Chief Executive Craig Pomare (pictured) said the report’s findings confirmed the concerns raised by the Association.

”A serious lack of competition at the wholesale level and inflexible contracts that prevent resellers switching suppliers were two major concerns we highlighted in our submission,” Mr Pomare said.

“We’re delighted that these two issues are key parts of the Commerce Commission findings.

“Quite frankly, we’re pumped with what we’ve seen today.”

Mr Pomare said the MTA would review the preliminary report in detail and looked forward to working with the Commerce Commission to finalise the report and its recommendations.

He said he hoped the release of the report would now see an end to the emotive language and finger pointing associated with fuel pricing.

“Generalisations about people being ‘fleeced’ are not helpful and just inflame the situation.

“We’re aware of members and their staff who have been verbally abused in the wake of those sorts of comments.”

Mr Pomare said the MTA was delighted the Commerce Commission had steered well away from that sort of provocative language.

“What the Commerce Commission’s report does do is shine a light on where the real problems in the retail fuel market are, and they are not caused by the retailers.

Mr Pomare said the other factor in pricing that shouldn’t be forgotten is tax, which currently makes up around 50% of the price of a litre of petrol.”

*Editor’s note: The majority of MTA’s service station members are independent retail fuel suppliers.