Aucklanders can now buy petrol for less than $2 a litre, after an early Christmas present from a New Zealand-owned fuel company.
Hamilton-based fuel supplier Waitomo Group, founded in 1947, announced on Wednesday it has dropped prices across all its fuel stops, with Unleaded available at just $1.999 a litre.
"As a 100 percent Kiwi-owned and operated, third generation family business, we want to deliver Kiwis a fairer deal," said managing director Jimmy Ormsby.
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"If our competitive Waitomo price can spread a bit of Christmas joy to other Kiwis, then we're stoked to be able to do that."
Waitomo has also dropped the price of Premium 95 to $2.129 and Diesel to $1.399 across all its Auckland fuel stops.
Aucklanders were hit with an extra 11.5c a litre (including GST) at the pump in July under the regional fuel tax. On top of that, prices increased by 3.5 cents nationwide in October as an increase to the fuel excise tax came into effect.
But even with the regional fuel tax, Waitomo's price of Unleaded 91 is still below $2 in Auckland for the first time since June. Mr Ormsby said he wanted to put money back in Kiwi's pockets with Christmas around the corner.
Waitomo's low-price fuel offering has led to greater price competition in the areas it operates, and the company has plans for further expansion. Three new fuel stops were recently introduced in Wellington, Papamoa and Rotorua, and Mr Ormsby says more will come.
"Waitomo's disruption of the market isn't stopping anytime soon," he said. "There are many other places in New Zealand, especially in the South Island, that are still missing out. That's not fair and it's not the Kiwi way."
Waitomo's Auckland spots:
- Bombay
- Epsom
- Mangere
- Pukekohe
- Te Hana
- Te Hihi
Petrol prices reached a 30-year-high in September, averaging $2.32 for a litre of 91 across the country. But prices have since dropped significantly over the last month, falling as much as 30 cents in some places.
The Prime Minister appeared confident last week that the fuel excise price bump did not affect fuel prices and again shifted the blame to bad practice within the industry, which led the Government to launch an investigation into the retail fuel market.
"There are existing indications of competition problems in the retail fuel market that are of concern to me, such as the more-than-doubling of petrol and diesel importer margins over the past decade," she said.
Ms Ardern announced a bill in September that would compel companies to give information to the Commerce Commission to fully understand how markets are functioning. But the bill and confirmed industry probe doesn't seem to have spooked petrol companies at all.
BP's managing director Debi Boffa welcomed the Government's new legislation, as did Z Energy, which is partially owned by the New Zealand Superannuation Fund.
Newshub.
