New fuel regulations, including terminal gate pricing, will take effect from today.

Energy and Resources Minister Megan Woods says motorists and smaller fuel companies are set to benefit from a more competitive market as the new regulations are enforced.

"A terminal gate pricing regime will improve competition in the wholesale market by making it easier for fuel companies to access fuel more cheaply and in more locations," says Woods.

The terminal gate price is a wholesale price for the bulk supply of petrol or diesel from a fuel terminal.

"Also among the suite of new measures, a dispute resolution scheme and rules to ensure contracts between wholesale fuel suppliers and their wholesale customers are fair," says Wood.

"While prices have recently increased due to the rising price of crude oil I am certain that over time the impact of the provisions in the Fuel Industry Act will promote competition in fuel markets to make things fairer for kiwi motorists and smaller players in the market."

The regulations, beginning today, support legislation that was passed last year (The Fuel Industry Act 2020) after a Government-ordered fuel market study conducted by the Commerce Commission found that fuel companies had been making higher profits than expected in a workably competitive market.

"Margins on regular and premium petrol have reduced since the Government announced the market study and these regulations will make things more competitive with more measures still to come."

A requirement for retail fuel sites to display premium fuel prices on forecourt price boards will come into effect by 11 February 11, 2022, and regulations requiring fuel companies to collect and disclose certain information are currently being developed to assist with monitoring of the fuel market.