Discount petrol goes almost unnoticed

CHEAP FUEL: Faulknors Service Station in Lansdowne has been offering the cheapest fuel in town. PHOTO/LYNDA FERINGA

There seems to be a fuel price war in Masterton and motorists haven't even noticed.

Faulknors Service Station on Opaki Rd has been selling Octane 91 for $1.99.9 a litre for the past two days with most other stations offering between $2.11.9 and $2.21.9 a litre.

Nationally, fuel hasn't been under $2 a litre for more than a year now.

Motorist Phillipa Mills was filling up at Faulknors when the Times-Age arrived.

She didn't even realise the price was below $2 a litre.

"I had no idea it was so cheap. It's good for me but I don't think it will stay like that for long."

Gail Forlong was also unaware she was pumping cheaper than normal petrol.

"It's good though. I think people have just become complacent about the price. They just accept it because that's what you have to pay. It's pay or walk," she said.

Faulknors' owner referred the Times-Age to Mobile NZ. However, no one from the company was available for comment.

But AA New Zealand senior policy analyst Mark Stockdale said that, nationally, fuel hadn't been below $2 a litre since July last year.

One service station at Levin, however, had been offering discounted fuel below $2 for most of 2013.

Motorists were offered discounts through supermarket vouchers which brought the price well below $2 a litre and they needed to look for the best prices to save at the pumps.

"People need to shop around," Mr Stockdale said.

Independently owned service stations, without high overheads, were in a position to offer discounted fuel while stations owned by large "global companies" often had higher overheads which helped dictate the price at the pumps - along with the price of oil.

"The price motorists pay reflects the overhead costs of the business ... the independent station's [overheads] can be less so it means they have a different price structure," said Mr Stockdale.

"People should keep an eye on the prices as they drive around to get the best deals."