Review of the Role of Independent Petrol Retailers
Background
The petroleum sector was deregulated in 1988, with the passage of the Petroleum Sector Reform Act 1988 and the removal of price control. Legislation that provided for the licensing of wholesalers and retailers and that prohibited wholesalers from owning retailers was repealed.
In mid-2001, the Motor Trades Association (MTA) approached the Associate Minister of Energy stating that, since deregulation, the margins received by independent retailers have reduced significantly to the point where many now experience difficulty in remaining viable. They note that wholesalers control the wholesale price retailers must pay and, in effect, the retail price independent retailers can charge (because retailers must price relative to other retailers to remain competitive).
The MTA believes independent retailers are now having difficulty in remaining in business and has asked the Government to consider protecting their position.
Review
To assist in providing advice to the Associate Minister of Energy, the Ministry of Economic Development commissioned a study by the New Zealand Institute of Economic Research (NZIER) examining the role of independent retailers in the retail petrol market. The Terms of Reference for the study were drafted in consultation with the MTA.
The NZIER report was released on Friday 12 April 2002. Submissions were called for and received by 7 June 2002. A summary of submissions has also been released. The Associate Minister of Energy met with major petroleum wholesalers in January and February 2003. They have agreed to enter into a dialogue with the MTA to address the issues identified in the report and work together to develop solutions.
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Terms of Reference
[ Published 25 October 2001 ]
Terms of Reference on the Review of the Role of Independent Petrol Retailers.
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Report on Independent Petrol Retailers Released - 12 April 2002
[ Published 12 April 2002 ]
Media Statement by Hon Paul Swain, Associate Minister of Energy.
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The Decline of Independent Petrol Retailing: Rationalisation or Predation?
[ Published 12 April 2002 ]
This study is intended to clarify whether the rationalisation process is efficient and good for consumers and if not, "to make recommendations for any amendments to government policy and regulatory framework to achieve government policy objectives."
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Submissions
A list of the submissions received on the Review of the Role of Independent Petrol Retailers.
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Summary of Submissions
[ Published 15 November 2002 ]
This document presents a summary of the key points made by submitters on the Review of the Role of Independent Petrol Retailers. Selected quotes are included where these have been deemed to add depth to the summary points.
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