Petrol price shocker for Wanaka, Queenstown and Central Otago
Wednesday, 27 September 2017
Southern lakes motorists are paying amongst the highest petrol prices in the country.
A recent Stuff survey found filling your vehicle with 91 octane fuel in Wanaka cost an astonishing 38 cents more than a BP in Mt Wellington, Auckland.
On average Wanaka motorists paid about 30c more than Auckland, those in Queenstown pay 23c more, in Cromwell it is 20c more and in Alexandra it is 16c more.
Automobile Association communications manager Liam Baldwin said the prices all came down to a lack of competition.
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'The fundamental price of fuel is the same across the board. They'll charge what they can.'
However, 30 cents was a big difference, he said.
'It would be nice to see more alignment.'
The Caltex and BP stations in Wanaka were both charging 219.9c per litre of 91 on the day Stuff called and 150.9c per litre of diesel.
Managers at both stations declined to comment, referring Stuff to their head offices to explain the price differences. BP manager Tony Myers said he was banned from speaking about petrol prices.
BP communications and external affairs manager Leigh Taylor said prices were independently set nationally but independently owned and operated BP stores, including Wanaka and Cromwell, set their own retail prices and managed their own operations.
The company did not bar independent owners and operators from speaking to the media, she said.
'However when it comes to pricing there are commercial sensitivities which may make them wish to offer no comment.'
Wanaka resident Denise Prince said the prices were outrageous and most locals preferred to fill up at a Mobil truck stop or cheaper McKeown's fuel stop.
'They're clearly targeting visitors to the area with their very expensive prices.'
She also questioned whether the companies colluded on prices as most of the prices in each town were the same as the other nearby stations.
Z Queenstown manager Yuvi Singh said his service stations prices were always the same as BP and others in the area.
'It just depends on the other retailers and head office. They tell me and then I do it. There's nothing I can do.'
Customers often complained about the price, he said.
'It's very dear you know. Especially in Queenstown.'
No companies suggested that the price difference was due to transport costs, although managing director of McKeown, Ken McKeown, said suppliers charged about three cents a litre for supplying to the South Island.
His company has 34 unmanned 24/7 CardFuel sites around the South Island and is looking to develop more. During the Stuff survey, 91 petrol at the Wanaka site was 203.9c a litre - 16c lower than at the main stations.
'It's not my concern how they price their stuff but it doesn't need to be that high from our perspective,' he said.
There was an element of companies looking out their door at the neighbour's prices before setting their own, he said.
However, profit margins were very low and no company could afford to be far away from their competition.
A recent breakdown of costs showed 47 per cent of the total cost was taxes and GST, 37 per cent was fuel, 14 per cent was the importer margin and 2 per cent was shipping.
McKeown said Queenstown was a possibility for a new site.
'Things are changing and it is getting more competitive. We are at the forefront of that,' he said.
A government report into the fuel market in July showed people in the South Island were paying 15c a litre too much for petrol, the Labour party said.
The gross profit margin on fuel at the pump had doubled to about 30c a litre in Wellington and the South Island over the past four years, and gone up by 5c a litre elsewhere, the report found.
The price of fuel – ignoring taxes – across New Zealand was now the highest in the OECD, it added.
Higher profit margins in the South Island and Wellington were 'not explained by higher costs in those areas', the study found.
Petrol prices on September 13 - 91 and Diesel
Wanaka
Caltex 219.9, 150.9
BP 219.9, 150.9
McKeowns 203.9, 107.9
Mobil pump 199.9, 105.9
Cromwell
BP 209.9, 136.9
Z 207.9, 134.9
Allied 197.9, 124.9
Alexandra
Z 204.9, 134.9
NPD 204.9, 134.9
Caltex 204.9, 134.9
Queenstown
Z 211.9, 141.9
Caltex 211.9, 141.9
BP 211.9, 141.9
Mobil 213.9, 143.9
Invercargill
Z 204.9, 134.9
Caltex 204.9, 134.9
BP 204.9, 134.9
Christchurch
Z 204.9, 134.9
Mobil 204.9, 133.9
Pak n Save 204.9, 134.9
Rolleston BP 204.9, 134.9
Hamilton
BP 195.9, 122.9
Waitomo 179.9, 104.9
Kerikeri
BP 188.9, 118.9
Auckland
Remuera Caltex 182.9, 110.9
Greenlane Mobil 190.9, 118.9
Ponsonby BP 193.9, 125.9
Mt Wellington BP 181.9, 110.9
Grey Lynn Z 191.9, 125.9
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