Delays in dropping petrol prices are costing drivers $15 million a year, the Commerce Commission says.

A delay in dropping petrol prices is costing motorists $15 million a year at the pump.

The Commerce Commission’s analysis of fuel monitoring data shows retailers are quick to put prices up in response to increased costs, but slow when it comes to bringing prices down when oil prices fall or the exchange rate changes.

"We can see clear evidence showing that fuel companies maintain temporarily higher margins after a decrease in their costs, lasting up to two weeks - at great expense to Kiwi motorists.

    • Dave@lemmy.nzOPM
      7·
      6 months ago

      I was actually quite surprised to read that they found the effect lasted up to two weeks. I was expecting longer.

      • AWOL_muppet@lemmy.nz
        3·
        6 months ago

        I’m going to put my tin foil hat on here, stand back and all that…

        …maybe that was the result of some ‘influence’ someone applied?

        These are the same muppets that have the great kiwi duopoly a free pass

    • grue@lemmy.worldEnglish
      6·
      6 months ago

      Raising prices on fossil fuels is not evil.

      Letting oil companies keep it as profit instead of confiscating it to subsidize clean energy or alternative transportation is evil.

  • deadbeef79000@lemmy.nz
    3·
    6 months ago

    Retailers improve revenues by $15m from leveraging price insensitivity over time from customers. Shareholders pleased.