Will increased competition lower petrol prices in NZ?
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Alongside the introduction of electric vehicles into New Zealand's fleet, the rise in fuel costs has been a topic on the lips of many as of late.
Taxes and alleged significant profit margins have reportedly been to blame for recent price hikes, but it seems that this might start to cool down in the near future.
Thanks to the looming introduction of the Fuel Industry Bill, a set of changes to the rules are soon to be implemented.
These changes should see competition between the big firms and independent suppliers increase, which should translate to cheaper prices at the pump.
One change that should make a decent impact is the ability for independents to change suppliers if they're locked into contracts. In theory, this should lead to better prices within the independents.
The bill will officially come into effect on Thursday, meaning that consumers could begin to see benefits within the week.
As a result of the Commerce Commission's investigation, this bill also means that petrol stations will have to advertise the price difference between regular and premium petrol.
As an independent supplier, Waitomo is set to benefit from these changes, although the company's boss Jimmy Ormsby is skeptical of the effects.
When speaking to Stuff, Ormsby seemed skeptical as the changes were “not going to be an overnight silver bullet”.
"I think the landscape has changed and it will create more competition," he added.