David Trewavas (left) is launching a mayoral investigation and businessman Brent Pocock (right) is starting a petition to address the comparatively high price of petrol in Taupō.
David Trewavas (left) is launching a mayoral investigation and businessman Brent Pocock (right) is starting a petition to address the comparatively high price of petrol in Taupō.
Fuel prices in Taupō are so high some elderly people cannot visit loved ones and the mayor is launching an inquiry.
However, fuel companies say rising costs and local trading conditions are to blame.
According to fuel comparison app Gaspy, the average cost of 91 in Taupō on Tuesday was$2.597. That made it the third most expensive place to fill up in New Zealand, after Warkworth ($2.689) and Queenstown ($2.629).
Taupō District Mayor David Trewavas says fuel prices are so high he is launching a mayoral investigation.
"On the surface, Taupō appears to be one of the most expensive places in New Zealand. More investigation is needed into the situation and I am happy to take the subject forward on behalf of the community."
The Taupō & Tūrangi Weekender surveyed fuel prices in Taupō on Monday, and found the prices of both 91 and diesel at Z, Caltex, BP and Mobil were similar while self-serve fuel retailers Gull and Waitomo were about 20 cents cheaper.
The most expensive places to fill up with 91, excluding membership deals, were Mobil Taupō Tongariro St, Z Taupō, BP Connect Wairakei, Mobil Junction Lake Terrace, Z Tauhara and Mobil Lakeview, all at $2.649.
The cheapest was at Waitomo Taupō and Gull Rifle Range at $2.459 and $2.457 respectively.
Taupō Budget Advisory Service co-ordinator Jan Otsuka says budgeting for petrol has been noticeably difficult in the last six months. She says their clients are limiting car trips to essential needs.
"For our elderly clients, especially if they have limited mobility, the price of petrol is preventing them from seeing the people they want to see."
The amount spent on food or family treats is directly affected when someone has to spend more on fuel.
The housing crisis isn't helping, as people can end up living in a location further away from where they work and are accepting an increase in travel costs, Jan says.
Automobile Association (AA) principal policy adviser Terry Collins says they have New Zealand wide concerns about margins the fuel companies are making at the moment.
"When you look at the long term monitored margin, there appears to be profit-taking."
He says where there is just a pump and a swipe card, then the fuel prices can be highly competitive.
"The owners are more community-focused and they know their customers."
He says the retail fuel market in Taupō has a good proportion of wealthy out of town customers who have an "I'll fill up when I go home" mentality.
"The locals will drive a few kilometres to save $5."
High fuel prices are impacting housing decisions, with a trend for people to buy homes closer to work to reduce transport costs.
In the long term, he expects fuel prices to rise nationally.
"The Emissions Trading Scheme puts 9 cents per litre on the cost of fuel and every year that goes up, it could go up 45 cents a litre in the next five years. Then there's Fuel Excise Duty and there is not much in the fund that is unallocated so that could go up."
He says high fuel prices have motivated people to buy electric cars and hybrids,
"But there is a huge demand for heavy workhorse vehicles. Recently 5000 Mitsubishi Tritons were imported, in advance of the Clean Car Programme kicking in next year."
Why do Taupō locals pay the third-highest price in New Zealand for petrol? Taupō Mayor David Trewavas is launching an inquiry. Photo / Rachel Canning
Retired owner of M21 Meats Brent Pocock wants to start a petition to address the higher fuel costs that local people pay.
He says local businesses and individuals are suffering financially from the Covid-19 pandemic and in his view there needs to be more accountability from the petrol companies about their pricing.
"Holiday people can probably afford it, but what about the people who live here and are really struggling?"
Brent drives to Taumarunui for hunting and to Te Kaha for diving and says he has noticed a big change in comparative fuel prices in other towns.
"Taupō petrol prices used to be lower than Ōpōtiki or Tokoroa. Now we are paying 20 cents a litre more and for the average person putting a tank of gas in their car each week, that works out to be $10 to $15 more."
He says a lack of competition is one reason fuel is so expensive in Taupō.
"Our Gull is tiny. When Gull went into Opōtiki, their fuel prices dropped 30 cents a litre."
Brent Pocock says Taupō residents and businesses are paying far too much for petrol compared to other towns. Photo / Rachel Canning
Fuel company Z Energy manages the pricing for Z Taupō. Caltex petrol stations also come under the Z ownership but the Caltex stations are owner-operated and the price is set independently.
Z spokesman Matt Hardwick says prices are based on input prices and local trading conditions.
"Z's fuel pricing is very localised. What this means in practice is that prices can be different at different stations within regions or towns and are certainly different between regions – so Rotorua and Taupō are not comparable.
"That pricing in Taupō service stations is similar shows the very localised nature of competition."
BP communications specialist Gordon Gillan says BP Connect Taupō is company-owned and operated and prices are reviewed every day 'to ensure competitiveness in the market'.
BP 2go Tauhara is independently owned and operated and set their own price and manage their own operation.
There are often big queues at Gull Rifle Range Rd, but Gull general manager Dave Bodger says Gull doesn't have any plans for a second Taupō site.
"It is quite common to have queues at our sites when there is a focus is on price."
