Z have already said yesterday it won't suddenly drop because oil could go back up again...

I’m sure there will be a good drop depending on how it stabilises. Up till now the drop in the oil price has been largely offset by the drop in the NZD against the USD.

sbiddle:

Z have already said it won't be because oil could go back up again.

 

wellygary:

sbiddle:

 

Z have already said it won't be because oil could go back up again.

 

 

 

 

 

Yeah, heard that this morning, then they added ,”we might end up buying too much and then we would be a “distressed seller” aka have to sell it cheap.

What a load of bollox .... expecting 3c tomorrow :)

Oil futures for April are poor. I suspect Z have been exposed to hedging and stand to lose $$$ from this sudden drop.

Their line every time oil rises is that prices have to rise immediately because prices are based around the replacement cost of fuel - it's funny how that suddenly doesn't apply when the price of oil falls.

And they will as always get away with this and their price collusion will continue.

sbiddle: Oil futures for April are poor. I suspect Z have been exposed to hedging and stand to lose $$$ from this sudden drop.

In other words the massive price drop could see prices at the pump rise to make up for this shortfall.

MikeB4:

 

And they will as always get away with this and their price collusion will continue.

 

I'm not sure why you think there is price collusion - retail petrol prices are anything but right now.

/me Laughs all the way to the power point.

SaltyNZ:

 

/me Laughs all the way to the power point.

 

Now that's just rude😀

freitasm: Same old story. When oil goes up price at pump goes up immediately. When oil goes down... Well, not so fast.

This actually boils my blood. 

If ever there was an industry that needed a Royal Commission, it's the fuel industry. 

Dratsab:

 

sbiddle: Oil futures for April are poor. I suspect Z have been exposed to hedging and stand to lose $$$ from this sudden drop.

 

In other words the massive price drop could see prices at the pump rise to make up for this shortfall.

 

Not rise - but if they'd got hedging in place they could still be paying higher costs for oil even though the price has dropped. They probably have some limited hedging - they're not like airlines who rely on it.

Air NZ for example (like most airlines) have most fuel hedged, so won't see the price they pay for fuel drop in the short term.

just out of the curiosity, I checked oil price vs petrol price in NZ yesterday

oil price, 2013 - ~$102 USD

petrol price, 2013 - $2.07 NZD

------

oil price, 2019 - ~$55 USD

petrol price, 2019 - $1.93 NZD

yay for government tax, regional tax, import tax, etc

So I absolute doubt we see price drop below $2 now... as it's 2.22 - 2.35 on average before discount in AKL :(

As of this morning the price range for 91 in Wellington area is $2.02 to $2.31. For 95 it is $2.14 to $2.40. Diesel is $1.33 to $1.59

As I understand oil companies in NZ are not price regulated, so they can set any price they want. They only limiting factor for them is competition, not oil prices themselves.