Road transport given fuel surcharge warning

Road transport businesses must incorporate fuel costs in their prices, according to an "understanding" between the Commerce Commission and the Road Transport Forum.

The ruling comes in the wake of a November court judgment against Air New Zealand's fare advertising, when Auckland District Court judge Stan Thorburn ruled fuel costs were a normal operating cost of business and must be included in headline prices.

Director of Fair Trading Deborah Battell said yesterday that since the judgment the commission had contacted more than 70 businesses, mainly in the road transport industry.

It found 32 were imposing extra charges for fuel ranging from 1.4 per cent to 10 per cent of the total price and issued a warning on January 25 that the fuel costs must be incorporated in the price.

She said the commission continued to find examples of businesses that had seen fit to introduce fuel surcharges.

"Companies are free to vary their prices, either up or down. Prices may also vary during the term of an agreed contract, provided the total price is represented and provided that this is allowed for in the contract."

Battell said the commission was also following up other companies in other industries that were using surcharges in their pricing.

The warning follows 12 complaints from customers and competitors about companies adding extra charges for fuel.

In November, the commission took Air New Zealand to court for advertising air fares with the fuel surcharge listed separately.

Judge Thorburn said Air New Zealand's advertisement "smarts most unpalatably of 'sharp' and unacceptable practice".

- NZPA