Petrol prices at BP Riverside hit a high again on Tuesday. Photo / Michael Cunningham
Petrol prices at BP Riverside hit a high again on Tuesday. Photo / Michael Cunningham
Whangārei motorists have been paying some of the highest average fuel prices in the country, but the reason why has remained unanswered despite a recent Commerce Commission report.
The revelation comes after fuel reached $3 per litre overnight on Monday in the Whangārei area, a price that is becoming all too familiar.
Questions have been raised as to why prices are so high despite international shipping and local transport costs being lower due to the Marsden Point terminal being situated nearby.
The prices for Regular 91 in Whangārei were comparable to other regions in the June 2022 quarter, however, the prices were the most expensive when compared countrywide for the last three quarters.
It found Whangārei was the most expensive city for all types of fuel, though price variations were relatively low.
Regulatory body the Commerce Commission is asking New Zealand’s major fuel companies to explain the anomalies across the country, which it has called “concerning”.
Fuel prices cannot be controlled or set by the Commerce Commission under the Fuel Industry Act, though it can monitor and request information.
Commission chairman John Small wrote on September 6 to New Zealand’s major fuel companies asking for further explanation.
“We are seeing wide variations in prices both between and within cities, and these pricing differences do not appear to be explained by differences in the underlying costs,” he said.
Acting general manager of market regulation Simon Thomson told the Advocate how quickly the commission will be able to come to conclusions about what is happening and why will depend upon the information they receive.
People in the area who are struggling to make ends meet are frustrated and confused by the prices and notable unfairness.
Mother-of-three Amy Cullen said she is living “pay cheque to pay cheque”, despite having two incomes.
“I’m on my [fuel] light most of the time. I never really fill up full; I try to do it when there are fuel discounts on,” she said.
Mother-of-three Amy Cullen doesn't understand why fuel prices are so high in Whangārei compared to other regions. Photo / Michael Cunningham
Cullen said her family has been budgeting “really hard” to make ends meet, forfeiting certain things and letting bills go into arrears so she can prioritise what is getting paid for.
She said she didn’t understand why prices were so high compared to other regions, despite Marsden Point being nearby.
“It’s frustrating,” she said.
Another resident, Annie Ferreira, said she hasn’t filled up her car and has instead been “watching the clock”.
“Yesterday we had to come to town, and my husband said, ‘Okay, we have to now watch where we go’.”
Ferreira said she doesn’t know how people with children - particularly single parents - are doing it.
“I can’t understand why [the prices are] so different [across regions],” she said.
The excuse of transport and other costs doesn’t sit right, because it’s currently cheaper on average somewhere like Taupō, she said.
“We’re getting ripped off left, right and centre. It’s all about money. It’s not about people. That [humanistic concern] doesn’t exist anymore,” she said.
Ferreira’s concerns mirrored those of Whangārei Mayor Vince Cocurullo, who expressed confusion around the price differences after reading the Commission report.
“I’m trying to understand whether it’s the petrol company or the Government ... where the problem actually lays,” he said.
Brodie Stone is the education and general news reporter at the Advocate. Brodie recently graduated from Massey University and has a special interest in the environment and investigative reporting.
