I'd wondered how much of the excise reduction would wind up being passed through if supply had become relatively inelastic. The government squared that one with threats to the petrol companies about the government's expectations.
That would have to wind up squeezing margins, if the cost of getting extra units in wound up being substantial.
Newshub asked me whether I expected declines in oil prices to be passed through. I do, but if the excise reduction meant a sharp constraint on those margins, then it could take a bit longer than it normally does.
The bit of context didn't fit in the space they had available, alas.
No comments:
Post a Comment