Waitomo heads further south

Wednesday, 22 July 2020

Waitomo Group are set to open a new competitively priced petrol station in Wellington. (First published October 18, 2018).

King Country-based fuel supplier Waitomo is making a larger push into the South Island.

It plans to open three new fuel stops in the South Island in the first week of August.

While the company already has one site in Christchurch, it will be opening another one in the city, while the two further new sites will be in Dunedin.

The new Dunedin stops will be located on Cumberland St to the north of the city and Wharf St to the east, while the new Christchurch site will be on Ferry Rd in Woolston. All sites will be unmanned and open 24/7.

Waitomo is opening more South Island fuel sites.

Waitomo Group managing director Jimmy Ormsby said the announcement marked a big step forward for the hundred per cent Kiwi-owned business and its national expansion plans.

**READ MORE:

Managing Director Jimmy Ormsby says Waitomo’s presence in the South Island is driving fuel prices down there.

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* Cheap fuel finally hits Wellington as Waitomo petrol station opens

Waitomo has plans for more sites across the country.

* Waitomo's cheaper petrol coming to South Island after Wellington move

“Having led competition and choice in the North Island fuel market, our next target was to deliver the same benefits to Kiwis in the South Island as quickly as possible. Today we’re delivering on that promise,” he said.

“Over the last 10 years, South Island motorists have suffered from price gouging, paying disproportionately high and unfair prices for their fuel, because of little or no competition in the area.

“Companies have been taking advantage of that lack of competition for a decade, to the detriment of hard-working Kiwis. Only in the last six months have we seen prices begin to drop to a fairer level. Waitomo’s presence in the market will ensure prices stay competitive permanently.

“Our model is simple – offer the fairest fuel price as we can to Kiwis, while ensuring our own business is sustainable for the long-term.”

Following expansion in the North Island, the company currently has 65 sites there and Ormsby acknowledges it will take time for South Islanders to get to know the Waitomo brand, but said the company was committed to building a network across the South Island.

“To deliver the maximum benefits of our fairer fuel prices for our Kiwi commercial and retail customers, we need a network stretching from the far north to the far south, so strategically these sites are a no-brainer for us,” he said.

In addition to the newly-announced South Island sites, Waitomo also has plans for more fuel stops in Northland, Auckland, Manawatu, Wellington, as well as further sites in the South Island and has just launched a new app for its retail customers that includes contactless payment and a search function for its expanding network.

As well as expanding its fuel network, the Waitomo Group is also heavily involved in expanding the reach of hydrogen across the country, teaming up with Taranaki-based Hiringa Energy - the first company in New Zealand dedicated to the supply of 'green' hydrogen - to work on 'the detailed engineering requirements and consenting for a network of hydrogen refuelling sites', some of which will be on existing Waitomo Fuel Stops.

According to the companies, initial locations have been selected, with plans for a further 20 stations to be developed across both the North and South Island. Development and consenting for the first hydrogen refuelling sites got underway earlier this year and the two companies will work together to identify and scope further sites for development of the network.

AA PetrolWatch spokesman Mark Stockdale says the presence of independent fuel retailers can only be good for consumers.

“For a long time the South Island had been missing out but, with these low cost brands like Waitomo and Gull expanding South, the region is benefiting from the competition that the North Island has had for over a decade.”

According to the Commerce Commission’s market study on the fuel industry, the presence of independent fuel retailers like Waitomo, NPD and Gull reduced overall prices.

AA PetrolWatch spokesman Mark Stockdale said the expansion of Waitomo was a good thing for motorists.

The unmanned fuel stop model allowed the companies to have lower overhead costs and the ability to charge less per litre of fuel.

Full service stations were compelled to match the price offered by the independents, despite tighter margins, he said.

“Wherever they go, we see the price come down,” Stockdale said.

“Everyone in the area benefits from the competition that these local brands bring even if not everyone shops there. They still benefit from their presence because the other petrol stations they might go to will be lowering their price.”

The petrol price in the South Island has seen significant shifts in the last 12 months.

Earlier this month, research by economist Shamubeel Eaqub found that, over the past year, the price of 91 petrol had fallen by 29c a litre across the country, by 24c in Auckland and by 40c in Christchurch.

Eaqub said that in June 2019, Auckland fuel prices were 10c to 15c lower than in Christchurch. But in the two weeks to June 14 this year, they were 4c higher, excluding the regional fuel tax.

Stockdale said at the time that he believed a shift in strategy by South Island based independent retailer NPD was driving the lower prices.