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Speaker 1: The Commu's Commission has taken a crack at fuel companies

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Speaker 1: for rushing to put the price of petrol up, but

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Speaker 1: then dawdling when they bring it back down. ComCom reckons

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Speaker 1: the fuel companies are costing US motorists fifteen million bucks

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Speaker 1: a year by delaying the drops in the petrol prices.

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Speaker 1: Terry Collins is the AA Principal policy advisor and joins me. Now, Hi, Terry, Afternoon, Heather.

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Speaker 1: So they call this thing rockets and feathers, where the

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Speaker 1: price rockets up but then feathers down. Is that what

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Speaker 1: you're seeing?

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Speaker 2: Yeah, well, I don't know if we've seen it or not.

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Speaker 2: They've reported on it where they can't explain why it's happening.

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Speaker 2: What I find interesting is that back when they did

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Speaker 2: the market survey in two nineteen, this condition, which is

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Speaker 2: quite common overseas, didn't exist. Now they have a new

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Speaker 2: way of modeling and have found this rocket and feathers

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Speaker 2: effect occurring. Well, I find that interesting is because usually

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Speaker 2: that occurs in a market where there's not a lot

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Speaker 2: of information around pricing. But since the first survey, we've

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Speaker 2: now got all our grades of fuel or advertising outside

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Speaker 2: the service station. We've got these fuel laps, We've got everything.

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Speaker 2: So what should have improved the information consumers as seemed

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Speaker 2: to have an effect that it shouldn't have had, and

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Speaker 2: I can't explain it and they can't explain it.

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Speaker 1: Are the petrol companies actually obligated? I mean, what's going

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Speaker 1: on right is that the price of oil goes up,

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Speaker 1: so they put the price of petrol up. The price

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Speaker 1: of oil comes down, so they slowly put the price petrol.

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Speaker 1: Now are they obligated to do it quickly? Can you

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Speaker 1: know they're a business? Can they do it when they

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Speaker 1: want to?

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Speaker 2: Yeah? Well, sometimes due to competition they take a bit

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Speaker 2: of a haircut, no, and other times they've got to

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Speaker 2: make up for it. It's a long term game for

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Speaker 2: them over the year, with fluctuations within it. I sometimes

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Speaker 2: explain to people, Okay, that tank of fuel in the

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Speaker 2: service station there, that was bought over a month ago.

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Speaker 2: I've got ship processed and done whatever, and now they've

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Speaker 2: got to sell it. Well, if the price goes down,

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Speaker 2: I've still got to They paid a high price for it,

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Speaker 2: so they've got to somehow get their money back. If

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Speaker 2: the price goes up, they go, oh, I can't brought

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Speaker 2: that the cheap posts, but my next tank's got to

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Speaker 2: be more expensive, so maybe I just try to get

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Speaker 2: as much as I can, knowing I've got to pay more.

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Speaker 2: I don't know how much of that exists within the market,

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Speaker 2: but I would really love explanation from a comcoms to

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Speaker 2: what's causing the suffite.

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Speaker 1: The Commics Commission says that kind of warned the fuel

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Speaker 1: companies right. They say that they're going to be watching

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Speaker 1: when the Auckland Regional fuel tax comes out, which I

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Speaker 1: think is it this month or next month, I can't remember,

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Speaker 1: but anyway, end of this month, end of this month,

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Speaker 1: are the people company is going to care?

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Speaker 2: Yeah? They are. I mean this is a crescent shot

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Speaker 2: across the bail by the Commist Commission. But I'll be

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Speaker 2: talking to context within the industry and they're very keen

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Speaker 2: because of the optics on it, not least by the

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Speaker 2: media and by the Commuts Commission, to ensure that the

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Speaker 2: Auckland motorists get their full eleven and a half cents

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Speaker 2: discount or rebate the increasing price come one July. I

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Speaker 2: know one of the large major's got a big team

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Speaker 2: working on it, trying to get it down by midnal

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Speaker 2: it on Matt David. It comes into effect across all

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Speaker 2: these stations.

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Speaker 1: Now, that's what I want to hear. Terry, love my dollars.

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Speaker 1: Thank you very much. Terry Collins, AA Principal Policy Advisor.

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Speaker 1: For more from Hither Duplessy Alan Drive, listen live to

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Speaker 1: news talks.

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Speaker 2: It'd be from four pm weekdays, or follow the podcast

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Speaker 2: on iHeartRadio