Woods MeganThird ReadingHon Dr MEGAN WOODS (Minister of Energy and Resources): I move That the Fuel Industry Bill be now read a third time.This bill is a significant step forward towards a fuel market that works for consumers which is a priority for our Government. The bill will bring in a suite of measures to boost competition in the wholesale fuel market and the benefit will flow through to the prices that motorists pay at the pump.I'd like to take a moment to reiterate the findings from the Commerce Commission's retail fuel market study which is a key reason that we are here today. The Commerce Commission carried out an extensive analysis of the state of competition in the retail fuel market and concluded that competition in the fuel market is not working as well as it could be. It found that fuel companies had been making persistently higher profits over the past decade than would be expected in a competitive market. Regional differences in retail fuel prices reflect variations in local competition and not solely differences in cost of supply. Premium petrol margins have grown faster than regular petrol and do not reflect actual cost differences in supply. Competition largely occurs in retail markets and this is less intense than could be expected. The report confirmed concern over successive Governments that consumers are paying higher prices for petrol and diesel than could be expected in a competitive market. The changes that this bill make will address that and we expect these benefits will flow through to motorists.The introduction of a terminal gate pricing regime and a review of wholesale contract terms will increase competition at the wholesale level which will filter down to the retail market and in turn to prices on the forecourt. The Government's focus on making changes at the wholesale level may mean low-cost brands such as Waitomo and Gull can access fuel more cheaply and in more locations which will provide opportunities for them to further expand in New Zealand. This will force other retailers to adjust their prices or lose customers.The Commerce Commission identified a need to enable consumers to make more informed purchasing decisions on fuel. They noted that fuel firms earn higher margins on premium fuel compared to regular fuel and the gap has been rising. They also noted that the price of premium fuel is not commonly listed on price boards which may be contributing to the trend. The bill provides for the regulation-making powers that can be used to require the display of this pricing information. I expect to make regulations to require the display of premium prices on price boards soon.The bill also includes an information disclosure and monitoring regime. This will allow us to assist the effectiveness of the measures implemented in this bill and test whether they enable a more competitive market over time. There will be long-term benefits from improving the information available on the fuel sector. There is a high level of interest in the effectiveness of competition in the sector and if higher quality information is held by industry or by Government this would significantly improve the timeliness and quality of decision making on the fuel industry.It is my great pleasure that we are able to commend this bill to the House because motorists have waited too long for action on the entrenched problems that we see in our fuel market. We know that the cost of fuel is a significant issue for households and businesses and we make no excuse for acting with speed for allowing competition to flourish.