Cheaper petrol on its way to Wellington

8:23 am on 18 October 2018

Cheaper fuel is heading to the capital, but the no frills set-up will mean as well as paying at the pump, you'll have to skip the pie and bag of chips.

Fuel pump.

Fuel pump. Photo: RNZ / Alexander Robertson

The Hamilton-based fuel supplier Waitomo Group will open an unmanned station with six pumps and 12 dispensers on the Hutt Road in the new year.

The company received resource consent earlier this week and will sell unleaded 91, premium 95 and diesel.

It already has 50 sites stretching from Paihia in the north, to as far south as Foxton.

Managing director Jimmy Ormsby said the family-owned company had been looking to bring some price relief to Wellington for the past year, but it was dependent on finding the right site.

"We've kept our Waitomo customers and their businesses moving, with competitive fuel prices for over 70 years. We are now in expansion mode, so the Wellington market was an obvious next step for Waitomo," Mr Ormsby said.

Its current price for 91 is $2.23.9 a litre and diesel is $1.51.

Chief operating officer Simon Parham said the company could offer low cost fuel because it bought in bulk from its supplier Mobil New Zealand.

"We don't have the overheads with the big fancy office, we look at everything we do and we're disciplined in how we invest, but also how we go to market.

"We buy in bulk from our supplier and we pass those savings on to the competitors across all the different businesses, but especially now that we've moved into the fuel-stop, we're going to be passing on those prices to the Wellington market," he said.

Mr Parham said the company would truck fuel from Mobil's Seaview terminal into underground tanks that will be built on the new site at 22-26 Hutt Road.

Get the RNZ app

for ad-free news and current affairs