Huge 73c per litre petrol price difference - Commerce Commission urges drivers to ‘shop around’

The Commerce Commission advises motorists to shop around for the best fuel price. Z gas station in Massey was offering one of the best prices in Auckland for 91 octane petrol on May 25. Photo / Sylvie Whinray

Motorists are being urged to shop around for fuel, with new data showing a staggering 38-cent price difference for petrol at the pump.

The findings of the Commerce Commission’s latest Quarterly Fuel Monitoring Report show a huge variation in the price paid for Regular 91 throughout New Zealand.

Gaspy's price analysis on the six most expensive fuel stations (right) and six cheapest fuel stations for Auckland on May 25. Photo / Gaspy

The gap between the most and least expensive sites, on the same day, within the same city, increased in each of the five largest cities in New Zealand between the September 2022 quarter and the quarter ending December 2022.

In Auckland, motorists filling up in the seaside suburbs of Herne Bay and Orakei were paying the most, with the cheapest gas found in Mangere East, South Auckland. In Wellington, motorists filling up in Karori were paying the highest prices and those in Stokes Valley the least.

Commerce Commission chairman Dr John Small urged motorists to shop around and use tools such as fuel price comparison app Gaspy.

He said the report highlighted the significant range in prices even between neighbouring suburbs.

The Z fuel station on Fred Taylor Dr, Westgate, advertised a price of $2.19.9 per litre of 91 octane on May 25. Photo / Sylvie Whinray

“Kiwi motorists can make significant savings by supporting stations offering lower prices and this is a win-win for consumers and for those retailers offering the lowest prices,” he said.

“These savings can be had by motorists simply shopping at the station round the corner from their usual.”

A quick look at price comparison app Gaspy on May 25 showed the cheapest place to buy Regular 91 was Costco Westgate, where members of the superstore could fill up for $2.04 per litre. Next in line was nearby Z in Massey North where any motorist could fill up for $2.13 per litre.

The most expensive fuel was Gas Kaurilands in West Auckland where a litre of Regular 91 was $2.77 per litre. That’s 73c a litre more expensive than Costco and 64c a litre more expensive than Z Massey. This means a $43 saving for a 60-litre tank, depending on where you fill up.

Gas Kaurilands owner Gloria Sharma said the reason for the high price was partly because of the four ram raids her small station had been subjected to in the past year.

The Herald covered the ram raids in January and the station has been hit again since then.

Each ram raid costs her $1000 in excess to her insurer and she has to hire commercial cleaners to remove glass and damage.

“We are constantly working with and finding shards of glass, it is heartbreaking to go through and costs us so much every time.”

Sharma said the local community were “very supportive” and purchased items such as chips, icecreams and chocolate when they could.

The second most expensive were Gas Mt Roskill, Caltex Dominion Road and Mobil Dominion Road, which all came in at $2.63 per litre.

The GAS station in Kaurilands was the most expensive in Auckland at $2.77.9 for 91 octane on May 25. Photo / Sylvie Whinray

All of the 11 cheapest sites to purchase fuel on May 25 were in West Auckland.

According to the Commerce Commission report, between the September quarter and the December quarter, price differences for Regular 91 in Auckland ranged from 22 cents to 38 cents. This meant someone filling an average 60-litre tank could save around $20, Dr Small said.

“If consumers actively shop around, they’ll put pressure on suppliers to offer lower fuel prices.”

Petrol stations are required to advertise their prices to customers. Photo / Sylvie Whinray

One Auckland motorist told the Herald he was pleasantly surprised this week when he drove into a Gull petrol station in Henderson and found the cheapest petrol he had seen in months.

“I just about dropped my takeaway coffee when I saw 91 was going for the bargain basement price of $2.09 a litre,” the man said.

“I had to double-check on the pump as I was filling up to make sure I hadn’t misread the streetside sign but sure enough, it was the cheapest fuel I’ve come across in months, if not years.”

The man was able to fill the empty 35-litre tank of his Suzuki Swift for $70.

“Petrol in my neck of the woods is usually around $2.40 a litre, sometimes more, which is certainly a drain on the family finances with running costs for two cars.”

Terry Collins from the Automobile Association said motorists needed to shop smarter for fuel and sign up for price comparison apps and loyalty programmes.

“If everyone supports the cheaper places it will help bring the price of fuel down,” Collins said.

“We need to be smarter with how we use the discounts offered with the loyalty apps like the BP app and Z’s Sharetank.”

Sharetank allowed motorists to pre-purchase up to 1000 litres of fuel through the Z app for the lowest price within 35km of the car. Fuel credits could also be shared with family members who were also using the app.

Collins said motorists could pre-purchased fuel ahead of June, when it was expected the Fuel Excise Duty would be reintroduced.

Z spokeswoman Abby Castady-Kristament said Sharetank allowed customers to choose to buy fuel at the best price.

Sharetank allows motorists to buy up to 1000 litres of fuel when the price is right to use at a later date. Photo / Sharetank app

There are also additional safeguards to ensure customers don’t wear the cost if prices go up, she said.

“Sharetank really is a win-win for our customers. If the pump price goes up after they’ve bought Sharetank litres, customers save as they’ve already locked in cheaper litres,” she said.

“If it goes down, customers can be alerted when they go to fill up and can choose to save their Sharetank litres for another day.”