 All Shell service stations in New Zealand are operated by local business people. Many operate as agents for Shell and for these outlets Shell has control over the retail pump price. However, many other Shell outlets are independently operated and they must by law set their own prices. Some of the factors affecting these prices are: - The wholesale cost to the business of refined fuel
- The size and overheads of the business
- The location of the service station- extra costs are incurred in transporting fuel to remote areas
- Competitors - where there are more competitors in the same area you will find that fuel prices are often lower. This is because they are all competing for the same customers and lower prices will attract customers. As in any industry businesses will always competitively match their rivals' prices.
In small towns or areas where there may only be one business operating, competition is minimal and therefore fuel prices are less likely to fluctuate. However the business may have higher operating costs and less customers which can mean that they need to charge more to make a profit.
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