New self-serve petrol station aims to disrupt Whangārei market

U-GO led to a petrol price war in Auckland but Whangārei's mayor is sceptical the same thing will happen in Whangārei.

A new self-service petrol station could help disrupt the fuel market in Whangārei, which has long been criticised for having some of the most expensive petrol in the country.

The Z Energy station on Porowini Ave is being converted to a U-GO site, which will open tomorrow.

U-GO is run by Z but boasts simplified, low-cost fuel. In Auckland, the nine U-GO stations sold 91 unleaded petrol at $2.23 a litre, leading to one competitor dropping to $2.12.

Z Energy general manager of customer Andy Baird would not say if the Whangārei U-GO would be as low as $2.23 a litre but said the aim is to be competitive.

“Whangārei was identified as an area where customers would benefit from increased competition in the self-serve market, which is why we made the decision to convert our existing Z Porowini site to U-GO.”

The high cost of petrol in Whangārei has outraged motorists, especially with the proximity to the Marsden Point fuel import terminal.

Investigations by the Commerce Commission point the finger at the lack of competition, particularly a lack of unstaffed fuel stations not attached to a supermarket.

It found having at least one unstaffed, unattached fuel station lowered prices by an average of 6c per litre within a five-minute drive.

However, the Commerce Commission’s latest investigation released in February found while competition from the unmanned Allied Fuel station drove prices down in Whangārei, those savings did not last.

Allied Petroleum’s self-service station on Kioreroa Rd expanded from a truck-only stop in December 2023.

The U-GO self-serve petrol station on Porowini Ave, a revamp of the Z Station, is due to open on Tuesday. Photo / Denise Piper

This helped keep prices low for a number of months but Whangārei’s prices increased in 2024 at a higher rate than Dunedin, New Plymouth and Hamilton – comparable regional centres close to fuel terminals, the commission found.

Whangārei mayor Vince Cocurullo, who has been advocating for local motorists to get a fair deal, is sceptical if the U-GO will make a difference, especially if it is still owned by an existing player.

“If it’s still being run by the same company, I don’t have confidence that we will see some change,” he said.

“I’m interested to see what the results will be - I’m very keen on change and lowering prices.”

Baird said the U-GO station offers competitively priced fuel through self-service. This is different to the Z stations, which will continue to have three retail sites and a truck stop in Whangārei.

“The U-GO offer is deliberately simple to suit those customers who want to drive in, pay at the pump, fuel and go, and this is reflected in its pricing.

“There is no fuel discount, loyalty card or programmes, just everyday competitively priced fuel.

“The offer is distinctly different from Z sites, which will continue to provide strong customer service through food and convenience offers, a loyalty programme and EV charging at select sites.”

The Porowini Ave site is the first U-GO to open outside of Auckland.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.