WAITOMO Group said providing an unmanned fuel site at Taumarunui would drastically reduce petrol prices there.
Two low-cost fuel operators are interested in bringing their services to Taumarunui to increase competition and bring fuel prices down.
Radio station owner Brian Portland believes people in the town are being “fleeced” in the prices they pay for petrol with the three retail outlets now based in town not seeming to be interested in competitive pricing.
Waitomo Group and Gull New Zealand have both confirmed to King Country News that they are interested in doing business in Taumarunui, and have been interested for some time.
Though confident their presence in town would lower fuel prices, representatives of each company said a main obstacle would be finding a suitable site.
“It’s wonderful that the people of Taumarunui recognise the best way to get some robust price competition is to bring Gull to town,” retail manager Mike Williamson said.
“Taumarunui is somewhere we’ve long been interested in having a site, but it has proven quite difficult to get a suitable spot established in the past.
“We have one or two leads we are following but are always keen to hear from anyone who is sitting on a site with good visibility and traffic count.
“So, while I can’t give a firm commitment that we will be there soon, I can promise the people of Taumarunui that we are working on it,” Mike said.
Waitomo Group’s manager customer experience, Greta Shirley, said her company had also been looking around the Taumarunui area for several years.
“We recognise that it is like Whanganui – another area where there is little competition, or any low-cost operators operating.
“We heard a similar story a couple of months ago when the residents of Whanganui raised the same issue with us.
“If you have a look at their pricing it is circa 20c more expensive because there is no low-cost operator, and it is probably quite similar in Taumarunui.”
Greta said it was proven that when low-cost operators like Waitomo came in, the additional competition was reflected in prices across all of the brands.
“Wellington is a great example. Before we entered the market there were no low-cost operators in Wellington region. And we came into the market and there was an immediate 20c to 30c a litre-drop across all brands. And when you think about what that delivers back into the pockets of Kiwis and therefore into the local economy, it’s pretty major.
“We see that kind of impact wherever we go, and I am sure the other operators who do things similar to us see a similar impact. It is something we are really proud of, because we are a family business and to impact pricing like that is pretty cool.
“For us as a business we have to find a site that will work. And then we have to go through quite rigorous resource and building consents, so it is a bit of a process.
“But I guess, from our perspective, if you think there is an opportunity out there get in touch because we will always have a look. Contact via inquiry@waitomogroup.co.nz or our 0800 number.”
How did Waitomo manage to make money when its competitors claimed there was hardly any margin in retailing petrol?
“It’s the same fuel – our current supplier is Mobil,” Greta said.
“We just keep our overheads low, and we don’t offer all the other stuff that the other brands offer, coffee, pies and convenience groceries and all that.
“Our stations are unmanned. You have to pump your own gas but that appeals to some people, and they are willing to forgo some of those other services for a fairer price for their fuel.”
Mayor happy to lobby for cheaper gas
The high cost of petrol has a disproportionate impact on rural communities with low average incomes and no public transport options, Ruapehu Mayor Weston Kirton said.
“Our communities are reliant on their own vehicles for getting to work, school, shopping and accessing essential services and must shoulder the additional financial burden of higher petrol prices.”
Asked whether he or the council would be prepared to lobby for a cheaper provider to set up in town to stimulate competition (namely, Gull or Waitomo), Weston replied as follows:
“I am happy to highlight the issues (as I am doing for public transport) and encourage any competition that would lower costs for whanau and our business and farming communities. I would also be willing to ask the Commerce Commission to look into the inconsistency of pricing in rural areas.”
He said the need to increase the amount of commercially zoned areas was recognised by the council when it developed and consulted on the new spatial plan for Taumarunui and Manunui last year.
“The council has a business-friendly strategy where we aim to support businesses wanting to establish or grow.
“We would encourage any operator planning to set-up to contact the council early in the process so we can support them through the consenting process and with any other regulatory or relationship needs,” Weston said.
