Fuel companies have been put on notice to drop prices after an inquiry concluded prices may not be reasonable - and Kiwis suffer the highest pre-tax fuel price in the OECD. Fuel margins are the cost difference in what fuel is imported and sold for, after discounts, transfer price, storage and handling and logistics costs. "People in the South Island have long complained that they believe they're subsidising people in the North, and people in Wellington have got similar prices. The study found the New Zealand fuel market "has features which may not be consistent with a workably competitive market". Retail fuel margins have increased significantly over the past five years, while fuel margins for commercial road and aviation users have been flat or falling.

Source: New Zealand Herald July 03, 2017 21:48 UTC