Call for less pain at pump
The Commerce Commission is reminding businesses to ensure lower fuel costs are passed through to customers via prices at the pump and the reduction of any surcharges.
Commissioner Bryan Chapple says it is reasonable for firms to adjust how much they charge in response to higher and more volatile global wholesale prices, but adjustments should be made when costs come down as well.
“It’s been a difficult period for many consumers and businesses as we’ve felt the flow-on effects from the conflict in the Middle East,” adds Chapple, pictured.
“Now that we’re seeing some stability in the region, we expect this will lead to lower imported fuel costs and we want to see that reflected in the prices consumers are paying.
“We expect to see decreases in global costs passed through to prices at the pump in the same way the increases have been.
“We’ve made this expectation clear to the fuel companies and will be continuing our weekly monitoring of prices so we can call out any behaviour that is cause for concern.”
The commission notes it does not set fuel prices or have powers to control them. It says its role is to monitor, report and hold companies to account through transparency and scrutiny.
It also seeks to ensure the sector remains competitive and that representations around pricing, including reasons behind any changes, are fair and accurate.
As global costs decrease, the commission is also reminding businesses that fuel surcharges and fuel adjustment factors (FAFs) must reflect only the additional costs they face.
Chapple says placing or increasing a fuel surcharge on a product or a service is legal, so long as the business is transparent and upfront about the surcharge and what it’s for.
“As fuel costs go down, we expect any surcharge or fuel adjustment factor to reflect this reduction in cost,” he continues.
“While surcharges and FAFs may not immediately disappear, they can’t be used as an excuse to recover unrelated expenses or to increase margins.”
The commission encourages anyone who believes a business has been misleading about the reason for price changes to report it via the “raise a concern” function on the regulator’s website.
