Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MED Revision Of Fuel Price Margins


MED improves petrol and diesel price margin calculations

The Ministry of Economic Development has revised the way it calculates petrol and diesel price margins, which are published weekly on its website http://www.med.govt.nz/oil/prices/weekly/.

The price margin is the difference between the New Zealand retail and imported product price, which covers the importer’s domestic transportation, distribution and retailing costs, as well as wholesalers’ and retailers’ marketing margins.

The Ministry began work on the methodology it uses to calculate these margins in late 2005, when it became apparent that changes in fuel specifications and other issues were impacting on the accuracy of these calculations. The new calculations use more representative international benchmark prices, and improved freight and insurance cost estimates.

The most noticeable change is for diesel, where oil companies have found an increasing difference between the cost of high sulphur diesel and the new lower-sulphur diesel and have consequently had to pay a higher premium for this fuel. This is due to a number of Asia-Pacific countries changing to lower-sulphur diesel at about the same time as New Zealand and constrained refining capacity internationally for the new diesel product.

For the purpose of comparison, we have contracted consultants Hale & Twomey to recalculate the margins back to the start of September 2005. These recalculations confirm a lesser margin through this period than previously reported.

Petrol & diesel margins will continue to be reported weekly at the beginning of the week on the MED website for the preceding Friday week end (three days earlier than previously). These may be accessed at http://www.med.govt.nz/oil/prices/weekly/.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news