Petrol giants under scrutiny: Z Energy defends $263m profit as BP heads to Parliament to explain price rises

The largest fuel retailer in New Zealand, Z Energy, has defended a rise in profit of $20 million over the last twelve months.

The Z Energy headquarters in Wellington reported a historic net profit after tax of $263 million for the 12 months ended March 31, 2018, Stuff reported.

In presenting the company's profit margin, Z Energy defended the existing petrol market, saying customers had a range of price choices at the pump.

"In our view a market review is likely to find a competitive market dynamic working effectively as demonstrated by the tension between volume and margin for existing participants, multiple new entrants investing capital due to the low barriers to entry, and customers have a wide range of choices for price and non price based offers."

However, the petrol industry as a whole is under scrutiny for its price setting practices.

BP is set to front up to Parliament today for a please explain over reports of a leaked internal pricing memo.

The document revealed a plan to raise fuel prices across parts of the lower North Island, with the hope rival petrol stations would do the same.

The Z Energy profit results outlined today reveal they are 10 per cent up on 2017.

Having secured almost half the market some are concerned Z Energy's ability to influence over petrol prices.
Source: 1 NEWS