Energy Minister Megan Woods is alarmed at the behaviour of BP and is meeting with the fuel company to discuss her concerns.
The BP petrol staion in Paraparaumu (left) is 18 cents dearer than the BP petrol station in Levin (right). Photo: RNZ / Richard Tindiller
An internal email leaked to Stuff revealed BP's tactics to reduce sales losses in Ōtaki, which is just south of Levin where fuel is considerably cheaper.
The email revealed BP would hike prices in Paraparaumu, Kāpiti and Levin to reduce the pricing gap and hoped its competitors followed suit.
"Rather than just reducing the price in Ōtaki we will be looking to increase the price at Paraparaumu & Kāpiti and also Levin," BP pricing manager Suzanne Lucas wrote in the email leaked to Stuff.
"We have already increased all three sites mentioned by 5cpl [cents per litre] and have found that the Z [Energy station] in Paraparaumu has already matched our pricing."
A short time ago the fuel company issued a statement saying petrol prices in New Zealand were "highly competitive"
"We adjust our prices in response to local competition, particularly in instances where discounting has become unsustainable, which is what occurred in the lower North Island last year," BP said.
"We know our customers have a choice so while we may not always be the cheapest in the market our objective is to ensure our total site offer is the best possible."
But Ms Woods said the email was concerning.
Energy Minister Megan Woods Photo: RNZ / Cole Eastham-Farrelly
"It's important that Kiwis know they are getting a fair deal at the pump and it's alarming to see evidence that isn't always the case," she said.
"I'll be meeting personally with BP to discuss my concerns," Ms Woods said.
Ms Woods said the government was changing the law to allow the Commerce Commission to conduct fuel market studies and compel fuel companies to release evidence.
National Party energy spokesperson Jonathan Young said he thought New Zealanders would be surprised by the email.
"Well, I think people expect that in order to attract customers that you produce the goods that they want at a competitive price," Mr Young said.
"People would expect pricing to be more competitive, rather than lifting prices in other outlets to make it seem as if there is consistency."
BP said it would release a statement on the matter.