Kaeo service station steals Gull's thunder

Work is nearing completion on an unmanned Gull station at Waipapa. Photo / Peter de Graaf

A long-awaited Gull petrol station is nearing completion at Waipapa - but has lost some of its thunder to a newly opened low-cost petrol outlet 20km further north.

Gull's unmanned service station off State Highway 10 at Waipapa was to have opened in June but has been dogged by delays.

Gull hopes to have the pumps flowing early next month but that depends on weather and sign-off from the council, NZTA and other agencies.

Meanwhile, an unmanned service station in Kaeo has stolen a march on Gull. Petrol prices dropped sharply on August 1 when Kaeo Farm and Fuel leased its forecourt to Allied Petroleum.

The Southland family firm, which has a network of fuel outlets across rural New Zealand, has set up a 24-hour self-service operation and is so far matching, sometimes beating, Whangarei's best prices.

Kaeo Farm and Fuel owner John Owen said he was delighted Allied had been so aggressive with its pricing, allowing Far North motorists to tank up at city prices.

"There's been much talk of the anticipated low fuel prices when Gull open their unmanned site in Waipapa, but it looks like Allied has stolen their thunder. It's great that we're the first cab off the rank to bring really competitive petrol to the Far North," he said.

Mr Owen said his shop was now free to focus on farm and garden supplies, hardware and outdoor wear.

Gull retail development manager Karl Mischewski was unfazed by being beaten by another cut-price retailer.

"The more the merrier. It's great for the people of the Far North," he said.

He was hoping for a "soft opening" of Gull Waipapa in early September. The final concrete was poured last week.

Once it opened, existing service stations would have to drop their prices in what the AA had dubbed "the Gull effect".

In particular the BP station on the other side of SH10 would feel the heat, Mr Mischewski said.

"We'll have a remotely controlled sign displaying our prices. We're looking forward to having some fun."

The pump price would not be known until opening day.

The price drop is unlikely to be as dramatic as it was in Whangarei at the height of that city's petrol price war, which ended earlier this year.

Mr Mischewski said Whangarei's price war was unsustainable, especially with Gull's fuel coming from Mt Maunganui and the big four firms' fuel from Marsden Pt.