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Cheaper fuel could be as early as six months away, MTA says

The Commerce Commission's recommended changes to make the retail fuel market more competitive could come into effect within six months time.

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Craig Pomare gives his thoughts after a Commerce Commission report recommended change to the fuel market. Source: Breakfast

The report released yesterday, identified little to no fuel market price competition for customers filling up at the pump.

Chief executive of the Motor Trade Association Craig Pomare told TVNZ1's Breakfast that it is good news for the smaller independent players in the fuel industry, and potentially lower prices at the pump very soon.

"I think we'd all love to see that right now but given legislation it could take 6 to 12 months to get through. But we think some of the wholesalers may start moving in advance of that anyway," says Mr Pomare.

“We’re happy because the bulk of our service station members are independents and the independents don’t have a lot of control over who gives them their petrol, the price they pay, the price that you and I pay every day."

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Changes to make fuel market more competitive recommended by Commerce Commission

Mr Pomare said at the moment the big three, BP, Mobil and Z control those prices.

"They control about 90 per cent of the market. They control what's called the wholesale market and then your retailers, independents get into relationship with them but have very little control of what that relationship looks like," he said.

He said the independents, the little players, are the mum and dad operations up and down the country.

"If they've got more choice about who they can go to to get their petrol from and they pay the same price as everybody else that means potentially more choice for you and I when we fill up.

"If you've got a group of independents they'll be able to pull together, knock on the wholesale market door and go look we'd like petrol at the same price you've been getting it at which means they can bring that cheaper price potentially to the market."