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Home / New Zealand

Masterton fuel war drives cost down

By Teuila Fuatai
Wairarapa Times-Age·
6 Nov, 2012 07:59 PM3 mins to read

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Masterton's low petrol prices are drawing in motorists from Wellington and Greytown.

The Gull on Chapel St was offering 91 octane fuel at $1.999 yesterday - well below the national average of $2.089.

Pricewatch.co.nz showed Wellington prices remained above $2 yesterday, with the cheapest price of $2.029 offered by Z Energy and Caltex.

Gull Masterton station manager Nick Lucas said the price drew people from out of town to fill up.

"I even have people ringing from Wellington asking about the fuel price because they're trying to decide whether or not to take State Highway 1 or 2 and fill up in Masterton."

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Masterton is one of several provincial centres around the country where drivers are saving big at the pump, while elsewhere others are paying up to 10 cents a litre more for petrol.

Whangarei and Rotorua were also benefiting from a surge in local market competition between petrol stations.

Referred to as the "Gull effect", New Zealand's petrol minnow is forcing prices down where it operates.

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Mr Lucas said the company set prices for its individual stations and tried to keep things relatively similar across regions it operated in.

"We've been $1.999 for two days.

"The cheapest we got down to was $1.869 and that was three or four weeks ago. But, we have hovered around $2 for most of the last eight weeks."

The same price was offered in Masterton yesterday by Faulknor's Mobil on Opaki Rd and Pak'n Save.

Z Energy, Mobil, and BP, all on Chapel St, were all offering 91 octane at $2.029 yesterday.

AA petrol watch spokesman Mark Stockdale said Gull's unstaffed stations usually offered the biggest savings.

"They don't have additional staffing costs and they don't have additional overheads from operating a larger site with a shop.

"Some of the Gull sites in Otaki and Wairarapa are unmanned and those sites are 10 cents below the national price and that's what we'd expect," he said.

"Where those sites exist, the competitors nearby are matching those prices."

Petrol was selling at $2.089 per litre at the beginning of the week - the lowest average national price since July, Mr Stockdale said.

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Gull retail business manager Graham Stirck said price variation between Gull stations was due to different subsidies.

"We discount some sites and others we don't," Mr Stirck said.

"It moves sometimes, so we might discount one and change it to another one."

APNZ

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