New Zealand fuel market financial performance study
Meade, Richard; Moore, Russell; Wilson, Peter | May 2017
Abstract
Our study addresses three questions:
1. Are retail fuel prices reasonable?
2. What factors could explain regional differences in those prices?
3. Is there evidence of cross-subsidisation between products and markets?
One of the key focuses of the study was to determine if retail prices were reasonable by assessing a market Return on Average Capital Employed (ROACE) and comparing this market return to a market Weighted Average Cost of Capital (WACC). This analysis, based on financial information provided by the majors, would have then been used to determine if the market was earning significant returns in excess of the market WACC, which may have indicated that retail prices were unreasonable. However, we were not able to complete this analysis as financial data provided by the majors was not provided on a comparable basis. In addition, some of the majors were not able to provide sufficient information within the timeframes for us to report. We discuss the limitations in respect of data received in detail in Section 4 of our report.
Citation
Meade, Richard; Moore, Russell; Wilson, Peter. 2017. New Zealand fuel market financial performance study. © New Zealand Institute of Economic Research. http://hdl.handle.net/11540/7267.Keywords
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Gas Reserve
Gas Distribution
Oil and Gas Leases
Natural Gas
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Gas Development
Gas Market Development
Oil and Gas Industry
Natural Gas Industry
Gas Industry
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Gasoline
Natural gas supply
Offshore oil and gas leases
Gas leases
Natural gas reserves
Fertilizers and manures
Gasoline pump industry
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