2007 ACCC report into Australian petrol prices - review of applicability to the New Zealand petrol market
- Client: Minister of Commerce / Ministry of Economic Development
- Published: August 2008
Hale & Twomey was commissioned by the Minister of Commerce and the Ministry of Economic Development to the review the Australian Competition and Consumer Commission (ACCC) report into Australian petrol prices for applicability to the New Zealand market.
Hale & Twomey found that an ACCC style report on the New Zealand market would conclude (like Australia) that the petrol market is fundamentally competitive. Another key finding is that, contrary to public perception, petrol prices
are not fast to rise and slow to fall, but move in line with the international benchmarks.
Table of Contents
- 1.0 Background
- 1.1 Introduction
- 1.2 Terms of reference
- 1.3 Outline of the process
- 1.4 The nature of petrol
- 1.5 Role of the ACCC in the petrol industry
- 1.6 Scope of the report
- 2.0 Recent movements in petrol prices
- 2.1 Introduction/ACCC conclusions
- 2.2 Retail price movements: July 2006 to May 2008
- 2.3 Longer term price movement
- 2.4 International petrol price comparisons
- 2.5 Monitoring of movements in New Zealand retail prices compared with movements in international benchmark prices
- 3.0 Industry structure – refining and importing
- 3.1 Introduction/ACCC conclusions
- 3.2 Refining
- 3.3 Imports and exports
- 4.0 Industry structure – wholesale & distribution
- 4.1 Wholesale
- 4.2 Distribution
- 4.3 Wholesale market share
- 5.0 Industry structure – retail
- 5.1 Industry structure
- 5.2 Market shares
- 5.3 Changes in the nature of petrol retailing
- 6.0 Regulation in the petrol industry
- 6.1 Fuel quality standards
- 6.2 Oilcode
- 6.3 Government regulation to improve transparency and competition
- 6.4 Taxation
- 6.5 Subsidies
- 7.0 Price determination and profitability – refining and importing
- 7.1 Refinery prices
- 7.2 Impact of IPP-based formula pricing
- 7.3 Profitability of domestic refining
- 7.4 Competitiveness of NZRC and the location advantage
- 7.5 Conclusions on refinery pricing and performance
- 8.0 Price determination and competition at the wholesale level
- 8.1 Introduction
- 8.2 Structure of the wholesale sector
- 8.3 Buy-sell arrangements/toll refining, shared stock system
- 8.4 Derivation of wholesale prices
- 8.5 Terminal gate pricing
- 8.6 Wholesale margins
- 8.7 Future of wholesaling
- 8.8 Conclusions
- 9.0 Price determination and competition at the retail level
- 9.1 Introduction
- 9.2 Components of retail petrol prices
- 9.3 Relationship between retail prices and international petrol prices
- 9.4 How prices are determined at the retail level
- 9.5 Retail margins
- 9.6 Competition at retail level
- 10.0 Prices in regional areas
- 10.1 Introduction
- 10.2 New Zealand situation
- 11.0 Price cycles
- 11.1 Introduction
- 11.2 New Zealand situation
- 12.0 Petrol shopper dockets
- 12.1 Supermarkets’ shopper docket arrangements
- 12.2 Previous consideration of shopper docket arrangements
- 12.3 Impact of shopper docket arrangements on competition
- 12.4 Impact of shopper docket on prices
- 12.5 Conclusion
- 13.0 Addressing impediments to competition in petrol refining, importing and wholesaling
- 13.1 Competition in wholesale petrol markets
- 13.2 Key features and behaviours in wholesale petrol markets
- 13.3 Impediments to price competition in wholesale petrol markets
- 13.4 Potential changes to the structure of petrol markets
- 13.5 Recommendation to reduce or minimise impediments to competition in wholesale petrol markets
- 14.0 The role of the Trade Practices Act 1974 in addressing impediments to competition
- 15.0 Measures to improve price transparency and competition
- 15.1 Measures to improve retail price transparency
- 15.2 Measures to improve wholesale price transparency
-
2007 ACCC report into Australian petrol prices review of applicability to the New Zealand petrol market.pdf
(PDF 706kB)]
- (available for download on the Ministry of Economic Development website)
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