Bridges Boo Boos

Sometimes it’s better just to shut up.

Transport Minister Simon Bridges says he’s warned petrol companies he’s watching how much profit they are taking at the pump.

But rather than say ‘yes minister’, one company has told the Government to check its facts because they’re wrong.

When oil prices dropped late last year Mr Bridges thought petrol company margins didn’t follow fast enough, and?he was outspoken?with his disapproval.

“What is?clear – they?got too high.”

The price of a litre includes the cost of the fuel, taxes, shipping and GST, while the remaining 18 percent goes to the company.

The Government says companies make roughly 30 cents per litre, but fuel company Z’s CEO Mike Bennetts says it only make about 19 cents at the pump.

“We believe the data from which he is making his choices around is actually inaccurate.”

Mr Bennetts says Government calculations don’t take into account discount schemes like supermarket dockets.

Then subtract company running costs plus tax, and Mr Bennetts says the final profit per litre is much less.

“About five to six cents a litre post-tax profit, and when all things are said and done that’s all there is.”

Bridges agrees that this may be the case, and says it is something he has been investigating.

“They may have a point – that is something I have been seeking advice on.”

This is what happens when you shoot off your mouth trying to be a populist but not actually having a clue about the whole process.

Do you know that the petrol companies are closely monitored about their pricing? ?And it’s all published on the Internet?

Someone should put Bridges back in his pen and tell him to stop creating sound bites about things he doesn’t know anything about. ?(That would be most things then).

– 3 News

48%
×