Kāpiti residents feel 'powerless' to BP's petrol pricing strategy

Monday, 30 April 2018

Kāpiti people were resigned to travelling out of the district to get cheaper fuel.

It's Kāpiti's worst kept secret: leave town to fill up your petrol tanks.

On Monday, proof of oil giant BP's pricing tactics in the district came as no surprise to Ōtaki locals. But it was mainly apathy, rather than anger, that greeted the news.

John Skilton owns a hardware shop in Waikanae. He buys his petrol in Levin.

Many people said they felt powerless at the pump, but also felt there was nothing they could do other than fuel up outside the district.

'They're a giant company and they can set the price at whatever they want. It's not like we're going to stop driving,' one Ōtaki resident said.

Samantha Hutchings from Levin. She buys petrol from Levin where it is much cheaper than in Kapiti.

BP has been asked by the Government to explain their pricing strategy.

* BP asked to explain pricing email

*** Read the pricing strategy email in full

An internal email obtained by Stuff outlined BP's plans to raise petrol prices in Kāpiti and neighbouring Levin to plug sales losses in Ōtaki.

The town's prices are up to 20 cents a litre more expensive than in Levin, just 19km north where there are Gull and Allied petrol stations.

The idea was to try and force the company's major rivals do the same thing, BP pricing manager Suzanne Lucas wrote.

All the Kāpiti people Stuff spoke to on Monday said the same thing: they did not like it, but felt there was not much they could do about it.

Paraparaumu's Robin Heath said she did not like the news but did not pay much attention to what she paid at the pump.

'They just charge what they like, don't they?'

One Waikanae resident said she thought the tactics were 'pretty unfair' but felt they were unlikely to change.

'Maybe if the Government does something. I just pay what it costs, that's just what you do, don't you?'

Another said she drove the half hour to Levin with a boot full of petrol containers that she then used to fill her lawnmower and second car.

'I know that sounds silly but it's the principle of the matter.'

Levin's John Skilton said he always filled up in his home town rather than in neighbouring Kāpiti where he worked.

'Why would I do it elsewhere? I can't see why everyone doesn't get the same price everywhere.'

Samantha Hutchings said the pricing strategy was unfair but everybody knew to buy their petrol in Levin.

'It's the cheapest place between Palmerston North and Porirua. Everybody comes here for petrol.'