Lower petrol prices for Manurewa and Papakura residents

Residents in Manurewa and Papakura have enjoyed paying at least 4 cents less a for a litre of petrol than our fellow Aucklanders throughout the year. This is because there is an agglomeration of petrol companies on Great South Road which has produced a strong competitive environment. Price competition between these 3 companies is fierce.  Generally when one puts its price down the rest will follow in order to maintain its market share.

Source: Layco, 2011. Personal Photos
One of three petrol stations offering Manurewa and Papakura residents lower prices.

Source: Layco, 2011. Personal Photos
One of three petrol stations offering Manurewa and Papakura residents lower prices.
You can also save a further 4cents of every litre if you have a fuel docket from a progressive enterprise supermarket meaning you'll only be paying under $2 for a litre of 91 fuel here.

Source: Layco, 2011. Personal Photos
One of three petrol stations offering Manurewa and Papakura residents lower prices.

As an avid user of these petrol stations I can say that there have been days when the companies have run prices significantly lower for a few hours to encourage motorist to fill up. What I find interesting is the fact that the fuel prices we pay per litre is constantly 3-4cents lowers then the average prices around Auckland. Petrol companies always comment about how their margins are extremely small and they have little ‘wiggle room’ to accommodate for lower prices. Yet our local petrol companies have proven that there is ‘wiggle room’ and they are able to rapidly respond to any price changes. What is the difference between our local petrol stations and those around Auckland? I cannot think of very many differences, in fact they are run by the same major companies that provide fuel to New Zealand, have excellence service and still offer the same petrol. The major difference is the number of petrol stations located within a small distance of each other. I think if this situation was copied as where in Auckland the results would be similar.

I have come to the conclusion that petrol prices will only be keep low if economic competition is available and visible. This drives companies to lower prices, become more competitive, provide great service while consumers benefit by paying lower and fairer prices.