No-frills petrol station is on the way

Everyone benefits, even if they don't want to go somewhere without a shop AA senior adviser Mark Stockdale

A new no-frills service station in Palmerston North is expected to put pressure on other service stations to cut fuel prices.

Waitomo Petroleum has begun building a new self-service petrol station on the corner of Tremaine Ave and Roy St. It is expected to open in mid-august.

Waitomo Petroleum manager Paul Easton said it would be an unmanned station, like Waitomo’s stations in Bulls and Foxton.

‘‘It gives us cheaper overheads, which we can pass on to the community with the lower fuel prices. And we structure our prices so they’re the same across the country.’’

Self-service stations without the shop or a car-wash can be up to 12 cents cheaper than full-service stations.

Pricewatch.co.nz showed the big four petrol station brands on an even footing in Palmerston North on Friday – Caltex, Mobil, Z and BP all had 91 unleaded at $1.83 a litre, and diesel at $1.11 a litre.

On the same day, Waitomo’s prices were $1.75 a litre for unleaded and 99c for diesel.

Automobile Association senior policy adviser Mark Stockdale said when no-frills fuel companies such as Waitomo and Gull opened, it usually pushed down prices at nearby petrol stations.

‘‘So everyone benefits, even if they don’t want to go somewhere without a shop as well.’’

The rise of self-service stations was a substantial change for the industry. The only petrol station brands with national reach seven years ago were the big four, but now there were 21, Stockdale said.

The cost of establishing new stations used to limit independent companies to their home town and surrounding areas.

But, with the introduction of pay-at-the-pump and cheaper technology, they could afford to expand, Stockdale said.