the stickers on fuel caps will bring the price down lol
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the stickers on fuel caps will bring the price down lol
We had 5 major players including Gull and Caltex until the Commerce Commission in its "infinite wisdom" decided a few years ago that it was okay for Caltex and ZEL to merge.
Surely this is a major egg on face moment and its now completely obvious that competition has been undermine by that merger.
Over time I have witnessed the premium grades of fuel basically doubling the price premium they used to trade at compared to 91 Octane.
e.g. ZEL used to sell 95 octane for 5-6 cents per liter more than 91 Octane about 6-8 years ago. 95 Octane is now 14 cents dearer than 91 at most of their stations.
98 Octane used to be 16-18 cents per liter dearer at BP than 91 Octane and is now well north of 30 cents per liter more expensive than 91.
A good thing is this price board for all grades as I think the dramatic widening of margins for premium grades of petrol is unjustified and I know from some recent article that the AA is of the same view.
Stuff headline “Petrol could fall 18c a litre if fuel retailers forced to show price”
Jeez - Z only make 4 to 5 cents a litre now.
Incentive schemes a dime a dozen mate...seems almost everyone has one so I'm not sure you can legitimately call them out for being hypocritical for that.
https://www.stuff.co.nz/business/117...how-to-improve "In some cases, premium was selling 40c to 50c a litre higher than 91 Octane, which Stockdale said was "outrageous".
This rort has been going on for far too long !
What's very clear going forward is ZEL's margins will come under increasing pressure and if they thought their margins were under unprecedented pressure this last six months, they ain't seen nothing yet ! Its very clear in my opinion the current forecast dividend rate is not sustainable in the medium term.
The rational move would be for ZEL to streamline their organisation but reading through one or two of their recent presentations management think they're still a "growth company" Say what ???
Prices could come down 18-32 cents per liter https://www.nzherald.co.nz/business/...ectid=12291251
"Prime Minister Jacinda Ardern is the fleecer-in-chief," Bishop said."
Point being fuel cards apparently have lead to higher margins ....the thing AA moan about
From the 589 page report
"and discounting has been associated with higher margins overall" Emphasis added. Doesn't actually say its causative though does it.
I think margin creep is unrelated and would have happened regardless. You see this with the margin expansion on premium grades of fuel that I've talked about today. Totally unrelated to discounting, the margin expansion on premium has been dramatic because its less transparent and they've done it simply because they can get away with it.
Bit surprised the shares haven't come in for more selling pressure today.
Exactly. Trouble is coming with the profitability of ZEL as sure as night follows day...
https://www.nzherald.co.nz/business/...ectid=12291165