Mobil New Zealand. Photo: RNZ / Dan Cook
The Commerce Commission is taking legal action against fuel company Mobil for the way it sets wholesale petrol prices.
The regulator has alleged Mobil breached fuel industry rules by not being transparent in the way it sets the prices for independent petrol stations.
Law changes in 2020 required fuel companies to disclose their prices, among other rules, to improve competition in the sector, with even handed treatment between company owned stations and independent retailers.
Commissioner Bryan Chapple said it believed Mobil has been breaching one rule since November 2021 and a second rule since August 2022.
"We think that the wholesale prices methods Mobil New Zealand's head office has used to calculate what they charge petrol stations (dealers) aren't transparent enough to meet their obligations under the Act," Chapple said.
"The purpose of the Act is to improve competition in the fuel market for the long-term benefit of consumers, and so we take any suspected breaches very seriously."
He said a lack of transparent wholesale prices meant that independent petrol stations were not able to see and question the rates that Mobil was charging them.
"The flow on effect is that Mobil head office is able to increase prices with minimal pushback, putting pressure on retail prices set by petrol stations."
He said Mobil, like other foreign owner fuel suppliers, imported fuel and sold it to independent dealers who own and operate petrol stations, even though the independent retailers might use the foreign companies' branding.
"A lack of pricing transparency for dealers makes it harder for them to offer the best prices for their customers," Chapple said.
The maximum penalty is $5 million for each breach.
Mobil said it would defend the charges brought by the Commerce Commission.
"We are disappointed that the Commission has chosen this course of action and will defend our business and the integrity of our pricing practices," it said in a statement.
Mobil said the issue had nothing to do with anti-competitive behaviour, but compliance with transparency requirements.
"We have cooperated fully throughout the investigation and continue to comply with all obligations under the Fuel Industry Act and Regulations."
However, it said it has brought in an alternative pricing method, which was being offered to all new and re-contracting dealers.
"We have informed dealers under existing contracts that they are free to move to the new pricing method whenever they wish."
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