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Media Release Fuel Study Hero 3

MEDIA RELEASE 5 December 2019

“At last!” says MTA in response to fuel market findings

The Motor Trade Association (MTA) says the findings of the Commerce Commission’s study of the retail fuel sector are game-changing.

Representing around 870 service station members, the MTA says it now looks to the Government to step up and implement the recommendations as quickly as possible.

“Today’s report is an early Christmas present,” says MTA Chief Executive Craig Pomare.

“We’ve been raising concerns about the serious lack of competition at the wholesale level and inflexible contracts that prevent resellers switching suppliers for a long time now.

“So we couldn’t be happier with the findings and we congratulate the Commerce Commission team on their work.

“This sets the scene for the biggest shake-up in the fuel sector since deregulation in 1988.”

Mr Pomare says the MTA hopes decision-makers will now focus on making the recommended changes as soon as possible and drop the unhelpful emotive rhetoric about motorists being ‘fleeced at the pump’.

“Many of our independent service station members have borne the brunt of these uninformed comments, being abused by customers. In a small community the sort of ill-will that’s been generated can be incredibly damaging.

“The Commerce Commission report has shown exactly where the issues are, and they’re not with the hard-working service station operators who are tied into long-term supply agreements that leave them with virtually no control over the prices set at their pumps.”

Mr Pomare says if the changes are actioned as recommended motorists can expect to more transparency and openness about pricing.

“Of course, the motoring public of this country are well aware that half of the price of a litre of petrol is determined by the Government in the form of tax.”