In December 2018 the Commerce Commission began a study looking into the factors that may affect competition for the supply of retail petrol and diesel used for land transport throughout New Zealand.

Kris Faafoi, Minister of Commerce and Consumer Affairs, had asked the Commerce Commission to carry out the study and make their final report by 5 December 2019.

The issues Faafoi asked to be considered in the study include:

•          The structure of the industry
•          The extent of competition at the refinery, wholesale and retail levels, including the role of                       imports
•          Any factors that may hinder competition between industry participants
•          The conditions for entry by potential competitors, including independent suppliers, and/or the               conditions for expansion
•          Whether wholesale and retail price and service offerings of petrol and diesel are consistent with             those expected in workably competitive markets, and
•          Features of retail petrol and diesel markets that are not in the long-term interests of consumers.

The Commission has released a preliminary issues paper and is now seeking comments on trends affecting the fuel industry, including changes in market structure, prices, margins and profitability; and the supply chain, including exploration and extraction of crude oil, refining, primary distribution, storage, secondary distribution, wholesale supply, and retail.

The Commission welcomes submissions on the paper by 21 February 2019 by email to marketstudies.submissions@comcom.govt.nz.

A copy of the preliminary paper can be viewed here: https://comcom.govt.nz/__data/assets/pdf_file/0027/119187/Retail-fuel-market-study-Preliminary-issues-paper-31-January-2019.pdf