OPINION: The Commerce Fee’s draft market examine into the $10 billion gasoline trade is 424 pages lengthy, nevertheless it appears to skip calmly over some proof about what went unsuitable within the petrol market and when.
The gasoline trade is a textbook instance of a problematic oligopoly.
Petrol is just about the identical and its worth is marketed on roadside indicators.
If prices go up or down or currencies fluctuate, one oil firm can transfer their pricing, see if others comply with, after which shortly reverse that worth change in the event that they find yourself out on a limb.
There is no such thing as a have to peel a decal off a litre of petrol. Retailers can simply nudge their costs into line with out resorting to unlawful collusion.
As a result of no conversations or express coordination is required, that’s all above board.
The market examine launched on Tuesday concluded the “core drawback” in New Zealand was the shortage of an energetic…