ComCom takes Mobil to court

The Commission has filed proceedings in the High Court, alleging two ongoing breaches of section 16(1)(a) of the Act, one starting in November 2021, and the other in 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,” Commissioner Bryan Chapple says.

“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.

“A lack of transparent wholesale prices means that independent petrol stations aren’t able to see and question the rates that Mobil is 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,” Mr Chapple says. 

One of the ways the fuel market in New Zealand operates is through large international companies, like Mobil, importing fuel and selling it at wholesale to independent dealers who own and operate petrol stations. Many of the dealer owned petrol stations use the branding of larger companies, like Mobil, but are run independently.

The proceedings the Commission has filed are regarding Mobil’s wholesale operations, which affect the independent dealers and, ultimately, consumers.

“A lack of pricing transparency for dealers makes it harder for them to offer the best prices for their customers,” Mr Chapple says.

Background

The maximum penalty under the act is $5 million per breach.