1 May 2016

Petrol station sale could push up prices

10:52 am on 1 May 2016

The sale of Caltex petrol stations to Z Energy could lead to decreased competition and higher prices, according to the Automobile Association (AA).

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Photo: RNZ

The Commerce Commission has approved the $785 million deal, although Z Energy must sell 19 petrol stations and a truck-stop to make sure it does not dominate the fuel market.

AA's petrol watch spokesperson Mark Stockdale said the deal gave Z about half of the national retail petrol market.

Mr Stockdale said Z was often first to increase petrol prices, and that behaviour may increase now the company had a greater market share.

However, he said the forced sale of the 19 petrol stations would address some of the AA's concerns.