Gull unmoved by Caltex acquisition
Caltex Australia’s move to buy a stake in a Filipino oil company, just months after its acquisition of Gull New Zealand, could be good news for motorists.
Caltex Australia bought 20 per cent of independent fuel retailer Seaoil Philippines in December in a move to grow into new markets.
Automobile Association senior policy analyst Mark Stockdale said increased fuel access for Caltex meant Gull could expand its operations in New Zealand, particularly in Wellington and the South Island, where the low-cost petrol company was not operating.
‘‘I can’t see these developments will be anything but potentially positive for Kiwi motorists,’’ Stockdale said.
Caltex Australia bought Gull for $340 million in 2016.
But Gull NZ general manager Dave Bodger said that, since its acquisition, Gull had continued to expand and grow its stations.
He said a lack of competition was keeping petrol prices high in Wellington and the South Island because it could not afford to build a fuel terminal, including large holding tanks, in the South Island and the big petrol companies would not supply it with fuel.
However, Caltex Australia’s decision to expand overseas had made no difference to Gull’s expansion plans so far, he said.
Bodger said Gull was looking to move into Wellington, but was waiting for the right piece of land for the right price.
Stockdale said consolidation by fuel wholesalers was a trend that would continue as fuel companies improved economic scale.
There are only three main fuel wholesalers in New Zealand: Mobil, BP and Z Energy.
‘‘There’s not enough competition in the wholesale market. Half of their [wholesalers’] fuel is being sourced from the Marsden Point refinery and the other half is being imported,’’ Stockdale said.
But Stockdale said the only price differentiation appearing was among fuel retailers, a trend that was expected to grow in 2018 because of reduced overheads.