Cut-price petrol seller Gull applies to put pumps in capital

Monday, 18 March 2019

​​Discount petrol business Gull hopes to bring lower fuel prices to the Wellington region by the end of the year.

A resource consent  has been lodged with the Hutt City Council by Gull to build an unmanned station in Petone.

The consent includes four double pumps at the proposed station on a site currently occupied by a second hand clothing store on Waione St.

Gull property and capital manager Karl Mischewski​ said  it was one of four sites Gull was looking at in the Wellington region. It was also investigating sites in Upper Hutt and the Lower Hutt suburb of Wingate while a consent had also been lodged for a station in Paraparaumu.

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The consent for the Petone station was the most advanced and, subject to the council processes, Gull hoped to have the site open by the end of the year.

Mischewski said the entry of discount fuel retailers into new markets often resulted in established sellers lowering their prices to match the competition. He hoped that would be the case in Wellington.

Gull's business model of utilising unmanned stations meant they were able to offer lower prices. 

'We haven't built a manned station in five years at least. Smaller facilities offer lower operating costs than large sites with a convenience store and a car wash - therefore we're able to provide fuel at a better price and customers seem to like the concept. It's fuel without the faff.' 

Gull has signalled it intention to move into the Wellington market at the same time as another low-cost retailer, Waitomo.

Waitomo managing director Jimmy Ormsby said the business has two unmanned petrol stations under construction in Wellington city and Upper Hutt.

The stations were expected to be open by June and May, respectively.

'We're excited to be entering the Wellington market and disrupting it,' Ormsby said. 

Mischewski said Gull had been looking to enter the Wellington region for some time but had held off because the economics of such an expansion were found to be 'marginal'.

Since Gull was acquired by Caltex Australia in 2016 there had been a greater ambition to expand into areas such as Wellington and the South Island, he said.

'We're delighted to have the ball rolling. People have been asking for many years 'when are you coming to Wellington?'. 

'Wellington has suffered for many many years [because of the lack of competition].'

Gull was 'actively looking' for other potential sites in the region.