Waitomo drags down fuel prices
Cut-price fuel retailer Waitomo has opened its first outlet in the capital, where motorists have long had to swallow some of the country’s highest petrol prices.
The new 24-hour unmanned station on Hutt Rd, Tinakori, began operating yesterday, sparking an immediate response from its competitors which moved to Waitomo’s opening specials, spurring hopes of a price war.
A lack of competition between the large fuel companies including Z, BP and Caltex, coupled with an absence of a low-cost fuel offering has meant higher fuel prices for Wellingtonians.
Finding a suitable site, rather than being unable to access fuel, caused a delay in Waitomo reaching the capital until now – a process which has taken 18 months since the site was bought.
The company saw a differential of between 20c and 30c a litre between Wellington prices and what Waitomo offered elsewhere.
‘‘We thought ‘hey, there is probably an opportunity to enter the market down there and bring some savings to Kiwis in Wellington’,’’ Waitomo managing director Jimmy Ormsby said.
Plans were already in motion for another Waitomo station in Johnsonville, with Ormsby hinting other outlets were likely.
Commerce and Consumer Affairs Minister Kris Faafoi conceded it was ‘‘difficult’’ for small retailers to enter the fuel market.
‘‘We do want to make sure that consumers are paying a fair price at the pump. That’s why we commissioned the market study by the Commerce Commission last year.’’
Business Central chief executive John Milford said increased competition yielded positive spinoffs. ‘‘Yesterday, fuel prices [in Upper Hutt] were up to 16c per litre lower than in Wellington, and I believe Waitomo will have the same effect after they open today on Hutt Rd.’’
Wellington mayor Justin Lester said Wellingtonians ‘‘have been paying through the nose for petrol for too long’’.