Timaru continues to pay more at the pump

While the Covid-19 pandemic has helped create lower worldwide fuel prices, Timaru motorists are paying more at the pump compared to nearby outlets.

Yesterday afternoon, the lowestpriced fuel being retailed in Timaru, according to fuel finding app Gaspy, was $1.78 per litre at four service stations – NPD on Evans St, Caltex Washdyke, Z Caroline Bay and Z Stafford St – while the highest was $1.92 at the unmanned Mobil station in Washdyke.

At the same time fuel at RDP Waimate, about 40km south of Timaru, was retailing at $1.71 while consumers were also paying $1.71 when filling up 91 petrol further south at Allied Glenavy. In other parts of the South Island fuel was as low as $1.47 in Christchurch, $1.69 in Oamaru and Dunedin, and $1.64 in Invercargill.

Fuel retailers say it is common for fuel prices to differ from region to region, and markets, competition and operational overheads determine how fuel is priced.

BP2go Highfield owner, Steve Fisher, said his service station set its prices based on the price of the fuel and market conditions ‘‘like any retailer’’.

‘‘We closely monitor the price and it depends on what we pay for it, what our overheads are and what the market is doing.

‘‘We just see what the market does to determine what we do.’’

Fisher said his service station was competitive 99 per cent of the time ‘‘depending on what is playing out with the competition’’.

NPD chief executive Barry Sheridan told Stuff the fuel industry is the most competitive it has ever been.

‘‘Prices do sometimes vary between regions for a number of reasons including localised market influences, the distance for our tankers to travel to deliver fuel, varying capital and operational overheads at different sites and special discounts that we sometimes offer at selected sites.

‘‘We always try to maintain competitive pricing but we aren’t always able to offer the same fuel discounts at all the sites in our network. In addition, we have some independently-owned NPD sites who set their own pricing.’’

Sheridan said NPD delivered the best fuel prices it could while ‘‘providing a sustainable level of profit to operate our business, to employ over 200 people, and to continue investing in the local economy’’.

Gordon Gillan, communications specialist at BP Oil New Zealand Limited said the oil and gas company reviewed prices every day to ensure its competitiveness in the market.

‘‘There are a number of factors that influence prices. There are a range of models in the market for customers to choose from – our BP Connect sites provide quality fuel as well as a comprehensive food and shop offer.

‘‘BP2go Highfield is independently owned and operated and set their own prices and manage their own operations.’’

A Z spokesperson said: ‘‘Our pricing team has confirmed that our prices dropped in line with the market movement overnight [Monday], so there isn’t a gap.

‘‘Christchurch is a separate market, with separate market dynamics.’’

A Mobil Oil New Zealand spokesperson said Mobil Washdyke was independently owned. Mobil did not set the price of fuel at the service station.