Francesca Rudkin: The inquiry has good intentions - but don't expect much

Banking and fuel reviews have been in the news this week, and while it has been all good intentions from the Government - it remains difficult to believe we’ll see any substantial change.    Opposition parties will always complain about the number of inquiries or reviews a Government or Crown entity does, but when they come to power they quickly do the same. Either way, it’s hard to get excited about them.   This week, the Commerce Commission released its latest analysis on fuel companies and their pricing, announcing that retailers are quick to increase fuel prices when costs go up, but slower to bring prices down when costs decline. It’s known as the rocket-feather approach. Prices rocket up and then float down gently like a feather.   If you put fuel in a car you already know this. But it was interesting to hear the commission put a figure on it - motorists would benefit by around $15 million a year if fuel companies were to drop prices as quickly as they increased them.   It’s a timely conversation, because the Auckland Regional Fuel Tax comes to an end at midnight on June 30th, and motorists are expecting that 11.5 cents to come off the price at the pumps immediately.   I think any fuel company with a marketing department and interest in customer loyalty will be working hard to make this happen.   But I doubt the Commerce Commission’s general warning that it will keep a close watch on the pricing tactics of fuel companies in future will make any difference.    If you want cheaper petrol then use the station apps, GASPY, or fill up at unmanned stations.   Banking was also in the firing line this week, with Finance Minister Nicola Willis announcing an inquiry into banking competition, with a focus on rural banking.    The inquiry, which will be undertaken by the Finance and Expenditure and Primary Production Committees will examine the state of competition in the banking sector, barriers preventing further competition, and any possible impact of the regulatory environment on competition and efficient access to lending.   Nicola Willis believes this will benefit us all, and yes, we’d love to see more competition in banking. So out of pure optimism I’m hoping we see some changes that benefit the customer - but once again I won’t be holding my breath for any significant changes.  LISTEN ABOVESee omnystudio.com/listener for privacy information.