Officials have warned the Government that the changes it is imposing on the petrol market to reduce prices may lead to collusion between fuel companies.
If this occurs – and officials say there is a moderate to the high chance that it would – new legislation would be needed to prevent escalating the issue.
Act Leader David Seymour says this would lead to price increases at the pumps.
But Energy and Resources Minister Megan Woods is confident the rules the Government has in place would prevent any collusion occurring.
Last week, the Government released its response to the Commerce Commission’s report into the fuel market, unveiled in December.