Canterbury petrol prices higher than other NZ cities

Friday, 5 July 2019

Taxes account for more than half the price we pay at the pump. (Video first published in May 2019)

A recent spike in Christchurch petrol prices has highlighted the lack of petrol price competition in the city.

Christchurch motorists took a significantly bigger hit than those in North Island cities when international crude oil prices jumped during May and June, new data shows.

The increase pushed up Canterbury's average petrol pump price to a $2.33 peak, 6 cents and 7c more than Auckland and Wellington respectively.

Canterbury car drivers have taken the heaviest hit from an oil price jump, despite Auckland's fuel tax.

With crude prices having settling again, the north-south price gap now has returned to its usual 3c.

* Pain at the pump as Christchurch petrol prices hit record high

* Cheap fuel finally hits Wellington as Waitomo petrol station opens

The South Island has fewer discount stations than the North Island, meaning it is more exposed to the brunt of petrol price hikes.

* Gull prepares to open first South Island station in Maheno, with five more planned**

Infometrics economist Gareth Kiernan said with fewer discount stations, South Island motorists were more exposed the brunt of such price hikes.

'In cities like Auckland, when some of the stations put up prices [in May and June], not everyone followed so they had to bring them down again,' he said.

'In Christchurch, everyone followed the increases because it's not such a competitive landscape.'

The figures, from petrol price monitoring service Gaspy, also show how Christchurch's pump prices remain above those in Auckland over time, despite Auckland's fuel tax.

Data supplied by Gaspy from May 5 to June 26 shows for regular 91 petrol, the average price for Canterbury was 224.9c a litre, while Auckland was 222.3c and Wellington was 221.4c.

The highest average price for Canterbury was 233.4c on May 27 and the lowest was 218.9c on May 15.

AA PetrolWatch spokesman Mark Stockdale said that with price competition and unmanned stations, Auckland had a much more competitive fuel markets than Christchurch.

'There is a great deal of price competition in Auckland and it results in service stations having the lowest prices in the country, even though they have a regional fuel tax,' Stockdale said.

'[Auckland] have got more of those brands, so they've got the Gulls and Waitomos but they haven't just got one or two … there's enough of those unmanned service stations operating in Auckland that are aggressively bringing prices down and Canterbury just doesn't have the same level of competition.'

Gaspy figures on Friday showed Nelson-based discount chain NPD had the lowest regular 91 price in Christchurch at $2.10 a litre, with the bigger chains charging $2.20.

In Auckland, the major chains were charging between $2.09 and $2.17.

Discount chain Waitomo opened a station in Wellington this week and plans to open one in Christchurch this year. Gull plan to open their first South Island station in Maheno, south of Oamaru, this month.