NZ orders inquiry into petrol pricing

The New Zealand government has ordered an inquiry into the pricing structures used by oil companies after fuel prices reached record highs, The New Zealand Herald reported. Commerce Minister Lianne Dalziel said she hoped the inquiry would explain to the public “why it takes so long for price decreases in crude oil to come through to the New Zealand petrol pump, and why it is so quick to get the price increases through,” the newspaper reported. Dalziel said in a statement that the Ministry of Economic Development has engaged independent consultants Hale and Twomey to “review and analyze petrol pricing.” The announcement comes after gasoline and diesel prices jumped around 5% a liter following a surge in international crude oil prices to fresh record highs. Fuel prices in New Zealand have risen more than 20% over the past seven months. Finance Minister Michael Cullen rejected suggestions from ANZ Bank that the government should cut the excise tax on petrol to help ease pressure on consumers. (June 16, 2008)