After years of confusion and spin, a single internal email exposes the petrol industry's pricing behaviour.
A directive from a mid-level manager in BP's Auckland headquarters to lower North Island petrol stations spelled out a plan to stem sales losses in Ōtaki, where petrol prices are up to 20 cents a litre more expensive than in Levin, just 19km north.
But instead of cutting prices in Ōtaki, BP pricing manager Suzanne Lucas outlined a novel tactical plan: raise prices in the whole area, and hope that BP's major rivals responded by doing the same thing.
"Rather than just reducing the price in Ōtaki we will be looking to increase the price at Paraparaumu & Kāpiti and also Levin," Lucas wrote.
"We have already increased all three sites mentioned by 5cpl [cents per litre] and have found that the Z [Energy station] in Paraparaumu has already matched our pricing.
"Over the next couple of weeks we will continue to try a number of tactics in the hope of reducing the pricing gap between Ōtaki and its surrounding regions."
