The Commerce Commission has found motorists enjoy an average of six cents off the price of their fuel if they top-up within five-minute's drive of an unstaffed petrol station.
As a result of the finding, councils are being urged to consider the competitive benefits of self-pump petrol stations as a way to keep fuel cheaper for Kiwis.
The latest analysis of fuel monitoring data by the Commerce Commission showed genuine benefits for Kiwi motorists from unstaffed petrol stations in offering savings and bringing down prices, the commission said.
"New Zealanders spend around $10 billion at the fuel pump every year, so even a small reduction in prices can put money back into the pockets of Kiwis," said Commissioner Bryan Chapple.
He said areas that included at least one unstaffed fuel station within a five-minute drive have prices that were — on average — six cents per litre lower than those areas without unstaffed stations.
It comes as a 1News Verian poll shows concern about what's to come for our economy. (Source: 1News)
However, he noted unstaffed stations run by supermarkets did not have the same effect on competition.
"Ultimately, we see consumers benefiting from an increased number of unstaffed fuel sites, while they also have the option of staffed fuel sites with a wider range of services and retail products if that's what they need."
The commission's analysis followed a "please explain" letter sent to fuel companies in September last year, asking for further information to help account for pricing anomalies in the fuel market.
Information disclosed to the commission by major fuel companies on fuel terminal, trucking, and retail site costs only explained some of the fuel price variation seen across the country.
"As well as reviewing the information the fuel companies provided us, we have used data from fuel pricing app, Gaspy, to assess the effect on local fuel prices when an unstaffed petrol site opens – which is greater competitive pressure," Chapple said.
Chapple advised local councils to consider the competition benefits of unstaffed petrol sites in planning processes and when considering consent applications.
"This information is also useful for industry participants as it highlights where they can improve competition by establishing new stations.
"Over time, we expect the opening of more unstaffed sites would see fuel companies dropping their prices further to better reflect the cost of operating staffed and unstaffed sites."
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