Fuel price shift: Gull knocked off its cheapest petrol perch

U-GO Waikaraka in Auckland now offers the cheapest petrol, surpassing Gull Ātiamuri.

• U-GO Waikaraka in Auckland now offers the cheapest petrol, surpassing Gull Ātiamuri.
• Gaspy’s Mike Newton noted the diminishing “Gull effect,” with Gull prices closer to the national average.
• AA’s Terry Collins attributes the change to new low-cost models from independents such as Allied and Waitomo.

Morning Report, RNZ

For a long time, New Zealand’s cheapest petrol was often found at Gull Ātiamuri. But now, fuel price monitoring site Gaspy says U-GO Waikaraka, Auckland, has the cheapest gas - and Gull is not the outlier it once was.

On Monday, U-GO was selling 91 petrol for $2.29.7 a litre, Gaspy said.

While Gull was credited with shaking up competition in the fuel sector through the “Gull effect” when it opened stations around the country, Gaspy director Mike Newton said that impact had been more muted recently.

“In the past four months, the gap between the national average price for 91 and the Gull National average price for 91 has closed slightly. Mid-January, Gull was 3.45c cheaper than the national average, whereas it is now 2.53c cheaper.

“Gull Ātiamuri, partway between Taupō and Tokoroa, used to be the cheapest station in the country by quite a bit - whereas now it’s not even close.”

Where is NZ’s cheapest petrol?

Newton said a large number of Auckland stations were only 1c more expensive than the U-Go, operated by Z Energy.

Last week, motorists on a Facebook community page complained that on Whangārei’s Gull discount day, the local New World petrol was still 11c cheaper.

“Also cheaper are Allied Whangārei, Gull Wellsford, Waitomo Kaikohe and Gull Snells Beach,” one person wrote.

Commerce Commission data showed that at times since June 2022, the discounted price of fuel from BP, Mobil and Z - such as when people are using their rewards apps - was at or even below the Gull price.

Terry Collins, AA principal policy adviser for transport policy and advocacy, said he could often find cheaper options than the Gull discounts he was sent. He said it could be that since it was sold in 2022, Gull’s new owner had a different business model.

“Since the sale of Gull, we have seen Kiwi-owned independents like Allied and NPD and Waitomo entering the market with low-cost self-service models that seem to be offering sharper prices. ‘The Gull effect’ is now the ‘independents effect’.”

Gull spokesman Michael Clifton said Gull was well known for its discounts to motorists “as part of delivering fuel savings for all Kiwis”.

“For the last 20 years, Gull has provided regular discounts in increasing frequency with no transactional limits or loyalty cards required. The variety of prices available is evidence of ‘the Gull effect’ creating a competitive market.”

- RNZ