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Government to review fuel price fairness

NZ Newswire logoNZ Newswire 8/02/2017

The government has launched a study into fuel prices versus returns to determine if motorists are paying fair prices at the pump.

Energy and Resources Minister Judith Collins announced the study on Friday and says it's expected to be completed by the Ministry of Business, Innovation and Employment by June.

"MBIE data shows that fuel margins have more than doubled over the last five years," she said.

"The market study will report on fuel company returns and will include in-depth analysis of oil companies' finances."

The study will focus on returns against cost and determine if companies are making "super-normal" profits.

Ms Collins said it could be done quickly but would require industry co-operation with MBIE, something she is confident can be achieved.

"It is in the best interests of everyone, including oil companies, to make sure New Zealand has quality, reliable and reasonably priced fuels," she said.

The terms of reference are yet to be finalised.

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