Given the price of petrol seems to be almost identical across the big oil companies, is that indicative of potential collusion, or do you have identical cost structures?
Collusion on price is illegal. Shell does not talk or collude about price with any of our competitors. We set the pump price independently based on the price of oil and our costs of production. Given that a large portion of the fuel price is determined by the price of oil and the impost of taxes, all oil companies face similar costs. At Shell, we are committed to bringing the best possible fuel prices to New Zealand motorists. The recent Government review of petrol prices states: “…there is no evidence of collusive behaviour amongst the oil companies and that their respective price rises, though closely following or matching each other, can be justified by the substantial increases in the cost of crude oil and imported petrol, and the operation of competitive pressures.
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