Gull opens first South Island site, south of Oamaru

Wednesday, 2 October 2019

Discount fuel retailer Gull has opened its first South Island station, offering some of the lowest prices in the country.

Gull Maheno on State Highway 1, south of Oamaru, opened on Wednesday morning.

Motorists can fill up regular 91 for $1.97 and diesel for $1.29. According to petrol price comparison app Gaspy, on Wednesday morning the price for 91 at nearby Maheno Service Centre was $2.09.

Gull NZ general manager Dave Bodger said the launch had been a long journey and would bring the 'Gull effect' - driving down the price among competitors in North Otago.

Gull planned to open its next station in Gore later this month.

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The fuel retailer plans to open six more over the next two years.

'Following that and further north of these initial two sites we own one further site, with agreements to develop and lease in place or close to finalisation for four others with several other good conversations happening for other outlets in other areas,' Bodger said.

Bodger said the sites they plan to develop include four in Christchurch's central city and suburbs, which they hope to open in 12 to 18 months. 

He did not want to reveal their locations to competitors.

Bodger said each new unmanned station would cost about $1 million, excluding land cost, and Gull expected to open one or two each year after the initial six.

The AA petrol spokesman Mark Stockdale said South Islanders had been paying more for fuel and Gull would help bring prices down.

'It will increase competition in the South Island which is a region which has been missing out on the type of price competition that's prevalent in the North Island which is in large part due to Gull being a low cost brand,' Stockdale said.

Gull was able to charge a lower price because it had lower overheads and that forced competitors to match their prices, Stockdale said.

In the North Island the Gull effect could bring down prices by as much as 20 cents per litre, he said.

Two years ago, Gull was bought by Caltex Australia, which is separate from the Caltex chain of petrol stations in New Zealand.

Gull launched in New Zealand in 1998 with the building of its state-of-the-art terminal in Mount Maunganui.

Gull made the first retail sales of petrol in 1999 and has grown its network to 92 branded sites.