Clarification of media release 2000/50 More Commission action against oil companies
Published15 Jun 2000
The Commerce Commission has issued this clarification to explain in more detail why the Omarama Service Station was charging more for Mobil petrol at its pumps than was advertised on the roadside sign.
Mobil Oil New Zealand Limited, which is the wholesale supplier to Omarama Service Station, advised the service station that it was going to reduce the wholesale price of its petrol. The service station reduced its retail price on the sign and the daytime prices on the pumps.
However, the night price at the pumps is controlled electronically and the Omarama Service Station must arrange for that to be changed. That was not done correctly.
The Commission investigated complaints that prices charged at the pumps were higher than on the roadside sign. It sent an official warning letter to the owner of the Omarama Service Station and sent a copy of the letter to Mobil. The Service Station corrected the problem promptly.
Mobil owns the physical equipment the pumps, the sign and the tanks at the petrol station. It does not own the Omarama Service Station business.
The Commission apologises for not explaining the relationship between Mobil and Omarama Service Station clearly in its media release.
