Petrol station mecca for motorists

By JOSIE CLARKE and NZPA

Most motorists are trying hard to avoid buying petrol, but one Auckland station can't serve its customers fast enough.

Queues are still forming around the block from BP Kingsland on New North Rd, where owner-operator Avtar Saini is selling 91 for 103.9c and 96 for 108.9c - 4c a litre cheaper than other city outlets.

And today he plans to drop his prices at least 1c more.

The station is a haven for motorists hit hard over the past week with two steep price rises - 5c a week ago and 4c on Monday.

Caltex has warned motorists to expect another 4c rise within the week. Shell led Monday's jump, blaming increases in the price of ready-made petrol and the falling New Zealand dollar. Caltex and Mobil followed later in the day, with BP and Challenge lifting their prices yesterday afternoon.

Mr Saini's station is in the middle of a pocket of three rival outlets near the corner of New North Rd and Sandringham Rd where old-fashioned competition has traditionally kept prices at least 2c cheaper than others in the city.

Shell Kingsland raised its prices to 110.5c for 96 and 105.5c for 91 on Monday, but promptly dropped them again to match Gull over the road.

Both stations are now selling 91 for 104.9c and 96 for 109.9c. All the operators said the latest round of increases had made no dent in their business.

Deputy Prime Minister Jim Anderton does not accept the petrol companies' reasons for the price rise. "There will be claims about the exchange rate but, of course, the question then comes, 'Do oil companies not take any kind of forward cover for prices?'"

The Ministry of Economic Development was looking into petrol prices and was expected to report back soon.