The Commerce Commission is reminding fuel retailers to learn new industry rules aimed at bringing down prices and stick to them.
The rules are part of a revised regulatory system to allow greater competition and ultimately lower prices. Photo: RNZ / Dan Cook
From the middle of next month fuel suppliers have to advertise a spot price for fuel at their storage terminals and supply wholesale customers who want to buy, known as terminal gate pricing.
The companies will also have to make sure long term supply contracts are not restrictive and prevent outlets shopping around for better deals.
The rules are part of a revised regulatory system to allow greater competition and ultimately lower prices.
"We expect that fuel businesses will comply with the requirements of the Act from the time those requirements come into force on 11 August," Commission chair Anna Rawlings said.
"We encourage parties that may be affected to seek legal advice to ensure they understand the rights and obligations that apply to them."
The changes followed the Commission's fuel market study of 2019, which pointed to shortcomings and lack of competition in the fuel market and was taken up by the government. A second set of changes come into force in February including a requirement for petrol stations to display the price of all fuel products.
Breaches of the new system could see businesses hit by penalties of up to $5 million.