Mobil New Zealand’s head office is currently before the High Court following legal action by the Commerce Commission. The regulator alleges two ongoing breaches of the Fuel Industry Act, relating to how wholesale fuel prices are calculated for independent petrol stations and whether they support a fair fuel price. The matter does not centre on headline prices at the pump. Instead, it focuses on pricing transparency at the wholesale level.
This case matters well beyond fuel. It highlights how regulators increasingly look at how prices are set. Pricing governance is now under scrutiny. Pricing transparency is becoming a baseline expectation across industries.
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Mobil’s Issue of Transparency in Setting a Fair Price for Wholesale Fuel
According to the Commerce Commission, the concern is that Mobil’s wholesale pricing methods may not be transparent enough for dealers to understand and question whether they support a fair fuel price. Commissioner Bryan Chapple notes that independent petrol stations may struggle to see how to work out the wholesale price and assess the dealer price.
Importantly, this is not about whether prices are high or low. It is about whether customers can clearly follow the pricing logic behind Mobil fuel prices. When customers cannot see how a price is built, they lose the ability to challenge it.
In pricing terms, this creates an information imbalance. One side holds the logic. The other sees only the outcome. Over time, that imbalance becomes a risk. Fair pricing relies on visibility, not just numbers.
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The Commerce Commission argues that a lack of transparency limits dealer oversight and the ability to test whether a fair fuel price is being passed through. As a result, wholesale prices may increase with minimal resistance. This can then flow through to retail prices paid by consumers.
Many petrol stations in New Zealand are independently owned but operate under large brand banners. These dealers rely on wholesale suppliers for fuel. When dealer price structures are unclear and shaped by fuel price regulation, their ability to negotiate or shop around weakens.
This is why regulators frame transparency as a competition issue. Not because intent is assumed, but because market pressure works only when pricing signals are visible. Hidden pricing logic weakens competitive tension over time.
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Mobil’s Defence and Fair Fuel Price Regulation
Mobil rejects the allegations and says it will defend its pricing practices. The company states that the matter does not relate to anti-competitive behaviour. Instead, it concerns whether aspects of its wholesale contracts meet transparency requirements under fuel price regulation and support a fair fuel price.
Mobil also notes it has cooperated throughout the investigation. It has introduced an alternative pricing method and made it available to new, re-contracting, and existing dealers to provide greater visibility into Mobil fuel prices.
This response is important. It reflects a broader trend. When pricing transparency is questioned, businesses move quickly to offer choice and flexibility. However, choice alone does not always address explainability. Pricing risk today is as much about clarity as compliance.
The Real Cost of Unclear Wholesale and Dealer Fuel Price Structures
Under the Fuel Industry Act, penalties can reach $5 million per breach. However, regulatory fines are only one part of the risk. Reputational damage often costs more and lasts longer, especially when questions arise about a fair fuel price.
Unclear pricing can strain relationships with partners and customers. It can also attract prolonged regulatory attention under fuel price regulation. Even if a business ultimately prevails, the process consumes time, focus, and trust.
For many organisations, pricing complexity grows quietly. Systems evolve. Contracts layer. Logic gets buried. What starts as flexibility slowly becomes opacity. Pricing complexity without transparency creates long-term value risk.
What Business Leaders Should Learn from This Case
For executives, the Mobil case highlights a governance blind spot. Pricing is often treated as operational. In reality, it is strategic and reputational, especially when questions arise about a fair fuel price.
Leaders should ask simple questions. Can our customers explain how our prices are set? Could we defend our pricing logic, including how to work out wholesale price, in plain language? Do we rely on trust, or on transparency?
Regulators increasingly expect businesses to self-police pricing clarity under fuel price regulation. Waiting for intervention is costly. Review pricing governance now. Ensure pricing logic is visible, documented, and defensible.
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What Pricing Teams Should Do Differently
For pricing teams, this case is a practical warning. Technical accuracy is no longer enough. Explainability matters when defending a fair fuel price.
Pricing models should be documented. Assumptions should be clear. Contracts should align with how pricing actually works, including how to work out wholesale price and justify the dealer price. If a customer cannot follow the logic, the model carries risk.
Teams should also test pricing from the customer’s perspective. Where confusion exists, transparency gaps exist. Build transparency into pricing design, not as an afterthought.
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Fair Fuel Price Is Becoming a Capability, Not a Claim
The Mobil case shows that regulators now assess pricing by process, not intent. A fair fuel price is judged by structure, logic, and visibility. For businesses, this marks a shift. Fair pricing is no longer something you claim. It is something you demonstrate.
Those who invest early in transparent pricing build trust and regulatory confidence. Those who do not face increasing scrutiny under fuel price regulation. Fair pricing is now a core business capability, and the time to strengthen it is now.
Many businesses inherit pricing systems that once made sense but no longer stand up to scrutiny. However, this creates an opportunity. Step back and ask whether your pricing is clear, defensible, and trusted.
If you are unsure, we can help. We work with business leaders and pricing teams to simplify pricing, strengthen governance, and restore confidence in how prices are set. Reach out for a conversation. Sometimes an external perspective is all it takes to turn pricing risk into pricing strength.
For a comprehensive view on how to prevent revenue loss in your company, download a complimentary infographic on the Project Governance Model.
Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 9000 1115.
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