Thursday, June 29, 2017


Minister collins is due to release the inquiry report on fuel pricing any day now.

Will it make known anything not already known.

I never buy "Z" and since they were allowed to buy Caltex they also are in my 'boycot'.

So it is Nelson Petroleum, NPD and McKeown with BP and their AA card discounts as backup.

NPD sell here in Akaroa through Brian Little's Auto Center at Town prices honouring Discount chits from Supermarkets and full discounts to Gold Card holders. The Nelson based Company came to play here when the "New Zealand owned" "Z" being the great community supporting outfit it says it is trumpeted to the nation, pulled out from Akaroa 80 Kms along SH75 from CHC

McKeown are establishing a network in out of the way places where the big boys prefer to close down and uplift their tanks. Mayfield, Methven, Fairlie, Parnassus and even in The Catlins listed in their website among many others.
Both McK and NPD beat the monopolies by 20 cpl, minimum so it is no Mystery that Stuff today is reporting a drop of 30cpl in Taranaki when Gull came to play.

The one fact that has me puzzled comes with my understanding Mobil supply NPD, I have no idea who McKeown gets fuel from and it matters not as the Company that originated in Oamaru has its own cards and discounts to Agriculture, its first focus, Movanners, Jet Boaters,among others,  make their one price across the SI very useful to those who find themselves low on fuel in out of the way places.

Minister Collins will be reported to,  that pricing is complex and subject to many variables but will it reveal the predatory pricing of "Z"/Caltex where competitive pressure is low, probably not, that mob tells us everyday how community focused they are. BS at wholesale rates!!


Johno said...

I have a Z fuel card and Z have always been the most expensive IMHO, even with the card's 6c/l discount. What I do like about Z is diesel and long reach hoses at every pump. Used to hate driving into Mobil and seeing 2 out of six lanes have diesel and they're blocked up with cars putting in petrol!

But I noticed a big price drop at Z yesterday and today I see this:

David said...

So, let me get this right. You support free market capitalism but you get your knickers in a twist when the free market raises prices above what you think they should be. I'll let you in on a secret - all businesses wish to maximise their profits and charge what the market will bear. If I can buy at $1.00 and sell for $200, is there a reason why I shouldn't? If my cost is $10 and the market will only pay $6 why should I bother?

If you think Z charge too much, then the free market allows you to set up a competitor. On your bike, let's see how you go.

gravedodger said...

Who is that directed to David, if Moi then go and read it again."Z" is predatory so I would only use when it suits, for example Twizel, when camped on Canals.

Many markets have laws against predatory pricing embedded and sometimes they are justified in monopoly interference when free marketing is in play but thwarted by other factors such as distance and isolation.

What lights my fuse is the image they attempt to portray as the NZ Super owned outfit of a Community focussed corporate when they attempted to flip Akaroa the bird. Fine to abandon the permanents who do not have the luxury of day trip fuel requirements from City Prices but hardly a fit with community caring. Allied card fuel at Duvauchelle is city plus heeps due to low turnover figures, same for Cooptown and Little River.

For city dwellers Z may be OK but not for this one.

David said...

Yes, GD it was aimed at you.

Not only are you wrong and ignorant about business practices, you don't have a clue what predatory pricing is.

Predatory pricing is NOT charging as much as the market will bear, it is charging such a low price that competitors are driven out of the market leaving the predatory pricer with a monopoly.

Predatory pricing would be Z remaining in Akaroa and selling at prices below cost, subsidized by its larger network. Your local man could not compete and would be driven from the market.

So, when are you going to open your own chain to compete with Z?

gravedodger said...

I am more than happy with NPD in Akaroa and McKeowns now SI wide options David.
You can define predatory how ever you wish and maybe I should have used monopolistic but a fuel company holding prices up to 30 cpl higher and difficult to avoid for many locals due to distance is an imorality when they can instantly respond to Gull opening in Hawera.
Especially when the typical behaviour in Hawera is viewed against the comprehensive advertising "Z" is using to portray what a good corporate the are pretending to be, too often being total bollocks when investigated.
May I respectfully ask you to end the condescension you are spouting as to my understanding of "markets", I spent over four decades dealing with all sorts of captive commerce because My outputs were subjected to unjustifiable manipulation by large often monopolistic corporates and ignorant Politicians from local through regional national and international, coupled to restricted inward goods suplies.

Market forces is one aspect of corporate life I do understand but eventually one of the bullys will make NPD and McKeown offers they will find difficult to refuse. Remind us again who now owns "Challenge".
Monopoly is also a good board game.

Anonymous said...

In the UK and France the Govt have allowed supermarkets to compete and with their huge buying power and captive customers have have brought the price of fuel down right across the board are always about NZ40/50cents cheaper than the main players, Total BP Mobil etc.
However given the huge differences in OZ/NZ food prices allowing NZ supermarkets to distribute fuel may not be such a good idea.

Lord Egbut

Anonymous said...

GD, Not as easy as spelling thieving..........

gravedodger said...

Yeah when read it on my Laptop later, the post created on a tablet certainly had a dogs balls look revealed but by then correcting seemed hardly worth it, not as if Theiving is actually a word to create earth shattering confusion.
As reports from uni minions often bemoan, its the thought that counts, and it gives another anonymous a chance to graffiti. Then again graffiti aint a doing word is it.

Now back in the real world does Anonymous number seventeen thousand and nine have anything constructive to add to the matter at hand.
Worthwhile comment is in pretty short supply so I guess the price goes up this morning on the NZX main board.

Meanwhile I am off to therapy.

Jobson Growth said...

Lordy, Lordy, Egbut. Have you not seen the proliferation of Coles branded Shell outlets and Woolworths branded Caltex? Our supermarket once was a duopoly have an enormous investment in petrol stations.

Adolf Fiinkensein said...

Jobless, you dumber than dumb bastard, Coles ain't got no supermarkets or servos in Akaroa or Aramoana.

Noel said...

"In New Zealand predatory pricing comes within the general prohibition on the use of market
dominance for anticompetitive purposes contained in Section 36 of the Commerce Act 1986, which
applies only to firms having a dominant position in a market. In the absence of market dominance there is
no sanction or inhibition in New Zealand competition law against price cutting behaviour or price
discrimination by firms not acting in collusion with others.
Market dominance in New Zealand is determined by examining:
“a)The share of the market, the technical knowledge, the access to materials or capital of that
person or that person together with any interconnected body corporate;
b) The extent to which that person is constrained by the conduct of competitors or potential
competitors in that market;
c) The extent to which that person is constrained by the conduct of suppliers or acquirers of
goods or services in that market.”
Section 36 prohibits market dominant firms from using their position of dominance to restrict entry,
prevent or deter competitive conduct or eliminate any competitor.
Predatory pricing could meet any of these criteria. The test is related to purpose, rather than
effect and that to come within the prohibition, the behaviour of the market dominant firm must involve the
use of its dominance. The predatory conduct may be directed against participants or potential entrants into
the market in which the firm is dominant, or participants in any other market.
Actions against violations of Section 36 of the Commerce Act are brought in the High Court by
the Commerce Commission or by private litigants. The High Court may, when hearing such cases, be
supplemented by lay members appointed for their expertise in industry, commerce, economics, law or
accountancy. Remedies which the Court has available to it are injunctions, penalties of up to $300 000
(for cases brought by the Commerce Commission) and damages (for actions brought by private litigants).

Anonymous said...

Jobson....No, I'm a bit out of date but the fact they operate under brand names means you are not getting he best deal. UK/France supermarkets buy, market and transport their own fuel.

Lord Egbut