NZ petrol prices reflect input costs not gouging - NZIER Insight 43

06 August 2013

Often motorists complain that petrol companies are quick to raise petrol prices at the pump but then conspire to drop prices slowly when international oil prices fall. Like in any efficient market, changes in the cost of oil – both up and down – should be passed on to consumers rapidly. We run the numbers and find no evidence of opportunistic gouging. Petrol companies pass on oil price decreases to consumers just as quickly as they pass on increases in prices. You can read the full Insight here.

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