Saturday, February 25, 2017

IT'S THE MARKET PEOPLE, DO SOME LERNIN.


Are consumers of fuels being ripped off?

Judith Collins has launched an inquiry.

For free here is what you will discover unless you insist payment;

Fuel prices are based on what the market will sustain.
The "GULL"  factor will suppress pump prices if there is a Gull outlet or similar available.
It costs money to provide fuel in more remote locations with low volumes.
Full forecourt service has a cost in wages and overheads.
To offer the price Gull forces, requires a subsidy extracted from more lucrative sites free from competition.
Environmental pressures make many outlets vulnerable from old underground tanks and refurbishment costs.
Truck stops and card outlets can provide lower pump prices.
Government tax extortion inherent in pricing is a restraint on barrel price/ pump price ratios.
The sale of the "Z" brand by Shell to NZ Super Fund has made monopoly based decisions more palatable and therefore unchallenged. Leading to the laughable decision for Z to take over Chevron , Caltex and Challenge brands with the facile divestment of 19 stations, out of how many?
Watch when niche operators like Nelson Petroleum, Waitomo, Mckeown, and any others are made "offers they can't refuse".

Here in Paradise, Nelson based " NPD offers city pump price 80 Kms  along highway 75 with supermarket docket discounts and gold card discounts while Allied in Duvauchelle with a card pump pricing much higher, come in Einstein.

But you are sounding caring Judith, payment  to box 48, cheque payable to Charles Ash.

5 comments:

Paulus said...

But havn't Gull just been taken over by Caltex Australia ?
Caltex NZ are now BP. Surely BP will do a deal with Caltex Aus soon and indirectly control Gull at BP's convenience.
Why do not Petrol stations put up the exorbitant price of 98 oct sometimes 30 cents higher that 91 oct.
I have a small euro engine designed for every best world available operation but needs to run on over 95 oct.
Shows how much the fuel stations have to hide.

paul scott said...

The idea of a service station with a girl in yellow skirt leaning over the oil thingy thrills me to bits.
I said to my Mother "Mum can we get a petrol station and I hire the girls on the fore court, it will work a treat, and we don't charge extra "

Anonymous said...

Lernin! Yes....High profile, overpaid and over here (France) AB's behaving like retarded back country fuckwits. These people are supposed to be ambassadors for their country.....suddenly I'm all for strict immigration controls on people who piss me off.

Lord Egbut

Noel said...

Paulus
What's Caltex Australia got that Gull never had?
Why did Gull never go past Masterton?

Noel said...

Paulus do you really need 98?
http://www.aa.co.nz/membership/aa-directions/driver/fuel-duel-2/