Petrol price wars see cost of fuel drop to $2.12 a litre
U-Go self-service stations in Auckland are offering 91 unleaded at $2.23 a litre. File photo.
Photo:
Marika Khabazi
Petrol price battles in Auckland - sparked by a new no-frills service station on the market - have seen prices fall as low as $2.12 a litre in some suburbs, but do not expect the big savings to last for long, says a fuel price expert.
There are now nine U-Go self-service stations in Auckland, offering 91 unleaded at $2.23 a litre, when the average is about $2.51.
In one Auckland suburb, the cheaper petrol led to an opposition gas station dropping the price as low as $2.12 over the weekend.
But Automobile Association principal policy advisor Terry Collins warned motorists that those kind of prices would not last for long.
He said U-Go has entered the market by dropping the price down low in a similar way to supermarkets with their loss leaders, where certain products are sold at cost.
"I think they've got very close to that margin and a neighbouring Mobil service station, rather than lose clients, responded by dropping their prices.
"If it is around $2.12, I don't think it's sustainable, but look, long may it continue if they do want to get into short-term price wars like that. I just think under $2.20 is a really good price."
He told
Checkpoint
that the stations would be trying things like larger discounts over the weekend to see what happens with their volume of sales.
"They just want to get some new clientele, it's a pretty irresistible offer when you offer it at that price.
"I couldn't imagine it happening every weekend, but we do know they are competitive, they will have specials, they will have discounts, and they're basically trying to maintain volume in tough economic conditions."
While U-Go stations were only currently operational in Auckland, motorists could expect to see more of them throughout the country, as more Caltex stations are converted to the low-cost model.
"What it's proven is that these low cost operators, consumers really like them, and now there is a definite niche in the market for them, we've got Allied, NPD, Gull, U-Go. They seem to be a growing segment of the market which provide cheaper fuel."
Collins said oil prices on the international market had stabilised around $65 a barrel.
"With the US administration causing a bit of mayhem in the market, there is more bang for buck with US dollars, and oil prices are cheaper around the $60-65 mark."
Z Energy, which owns the U-Go brand, did not directly respond to questions about whether the lower price was here to stay, saying pricing was localised and could be different at each site, depending on factors like competition.
Sign up for Ngā Pitopito Kōrero, a daily newsletter
curated by our editors and delivered straight to your inbox every weekday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
11 minutes ago
- RNZ News
RNZ recognised at Radio and Podcast Awards
Alexa Cook (left) won best journalist, while Kate Green was awarded best new journalist. Photo: RNZ RNZ has won plaudits for its news and podcasts at the annual Radio and Podcast Awards. RNZ's Alexa Cook won best journalist, and reporter Kate Green was awarded best new journalist. RNZ's journalism was also recognised for best team coverage on the sinking of the HMNZS Manawanui . RNZ was also a finalist in the category for its coverage of the Tangi of Kiingi Tuheitia. RNZ won five podcast categories, including best podcast producer or producing team. The Detail , a Newsroom production for RNZ, again picked up best news and current affairs podcast. Nellie's Baby , a hit podcast by RNZ investigative journalist Kirsty Johnston, won best society and culture podcast. In the radio categories, Newstalk ZB's Mike Hosking was awarded best talk presenter, ahead of stablemate Heather du Plessis, RNZ's Lisa Owen for Checkpoint and Morning Report' s Corin Dann and Ingrid Hipkiss. Sunday Morning host Jim Mora was recognised for services to broadcasting. Newstalk ZB won network station of the year and More FM Northland won local station of the year. The Sir Paul Holmes Broadcaster of the Year was Newstalk ZB's Heather du Plessis-Allan. The full list of winners is here . Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
an hour ago
- Scoop
Urgent Reform Needed To Address Mental Health Crisis In NZ Construction
Press Release – The Professional Builder Marti Amos says as part of a move to improve financial management in the sector he has now authored a book, The Profitable Builders Playbook, which is aimed at equipping builders with the business acumen needed to navigate these challenges. More needs to be done to address the high rates of suicide in the construction industry, according to the head of one of the world's largest mentoring services for the sector. Recent research shows New Zealand's construction sector is facing a mental health crisis, with suicide rates 25% higher than other sectors and Māori, Pasifika, female, migrant workers, apprentices and labourers among those at higher risk. This is due to a number of factors including financial instability, low pay and lack of mental health support. [1] Marti Amos (Ngāpuhi), a former marketing lecturer at Otago University and the New Zealand-based head of The Professional Builder, says these issues are amplified by the industry's boom-and-bust cycle, cost-of-living crisis and a training model that prioritises trade skills over business acumen. [2] 'Kiwi tradespeople are trained to excel on-site, they are underprepared to manage the multimilliondollar business aspects of their work, with dire consequences for their mental wellbeing. 'Our construction workers account for about 7% of workingage male suicides – with nearly one worker losing his life to suicide each week and the avoidable burden and impact of suicide in the NZ construction industry has been estimated at $1.1 billion per annum,' he says. Amos, whose coaching service has supported over 2,500 building companies worldwide over the past 21 years, says the growing mental health crisis among Kiwi builders requires a radical overhaul of the country's traditional construction model – with greater emphasis on financial literacy a priority. 'The New Zealand building industry is seeing its lowest levels of annual growth over a decade with a rate of just 0.6% in the second quarter of 2024 – a factor that is likely to exacerbate mental health concerns for many in the trade. 'Kiwi builders have been taught how to create outstanding projects, they're brilliant with the tools – but no one has taught them how to build a great business. 'In New Zealand and Australia, builders often employ their own teams and handle every aspect of a project themselves. This contrasts sharply with the U.S. model, where general contractors delegate tasks – reducing the burden on the individual,' he says. Amos says his concerns extend beyond the daily operational stresses that plague many builders. He says that without a proper understanding of financial management, many are left grappling with severe cashflow challenges, working long hours and sacrificing their personal lives – a situation that has, in many cases, led to overwhelming stress and deteriorating mental health. 'When you're constantly worrying about how to pay your subcontractors or secure payroll for the next week, it isn't just your business that suffers – it's your whole life,' he says. Amos says demand for targeted support from builders around the world is growing rapidly and his service, The Professional Builder (TPB), which started with a team of three people in 2004, has expanded to 56 and is projected to reach 100 employees within the next 18 months. Company revenue is also projected to double to $30 million within the same timeframe. He says TPB operates in five main countries: the US, Canada, the UK, New Zealand and their fastest growing market – Australia. The company has launched an expansion programme to grow the US market, with plans to increase their physical presence there and establish partnerships with hardware wholesalers, similar to their relationships with Carters, ITM and Mitre 10 in New Zealand. Amos says as part of a move to improve financial management in the sector he has now authored a book, The Profitable Builders Playbook, which is aimed at equipping builders with the business acumen needed to navigate these challenges. 'At the moment they're stuck on the builder's 'hamster wheel', caught in the weeds of daily operations without the skills to manage the large sums of money and complex challenges that come with running a construction company. 'What we need is to implement business training into apprenticeship programmes to ensure that our future generations of builders are as adept at managing large-scale financial responsibilities as they are at delivering quality craftsmanship. 'With a vital sector at risk and the mental health of thousands hanging in the balance, my message is clear: reform is essential. 'As New Zealand's construction industry stands at a crossroads, stakeholders must adopt a more balanced training model – one that nurtures not only technical excellence but also financial literacy and sustainable business practices. 'This call for change is more than an economic imperative; it is a matter of safeguarding the well-being of those who build our nation,' he says. More information on The Profitable Builders Playbook is available here [1] BRANZ. (2024). Workplace psychosocial stressors in the construction industry. Retrieved from here. [2] BRANZ. (2024). Workplace psychosocial stressors in the construction industry. Retrieved from here. Marti Amos Marti Amos (Ngāpuhi) is a business strategist, entrepreneur, and global mentor who has helped over 2,500 building company owners scale their businesses and achieve financial independence. As the founder of The Professional Builder (TPB), he has built a team of 56 professionals operating across New Zealand, Australia, Canada, the UK, the US, and Puerto Rico, delivering business growth strategies for the construction sector. Born and raised in Stewart Island, Marti studied commerce at Otago University, where he pursued PhD research on branding. He lectured in Marketing and MBA programs, examined MCom theses, and worked as a Māori students' tutor and thesis officer in Otago's Commerce Division. As a Mannaki Scholarship recipient, he was also awarded the Otago University Postgraduate Māori Scholarship in 1998. Beyond academia, Marti has built eight businesses across wholesale, insurance, mortgage banking, cleaning, and coaching. As founder of Action Coach New Zealand, he ranked NZ's #1 business coach and #2 globally out of 1,250 coaches worldwide. His expertise in business scaling and financial strategy led him to develop TPB, which helps construction business owners increase profitability and efficiency through structured business systems and mentorship. His insights on business growth and financial resilience will be shared in his upcoming book, launching in May 2025.
RNZ News
an hour ago
- RNZ News
Supermarket sector competition reports like Groundhog Day
Supermarket sector competition reports are like Groundhog Day. Photo: 123RF Analysis - Compare the following two statements: "Some of the signs I am seeing is that suppliers are very fearful of repercussion, there's a lack of trust." And... "My concern is that the power imbalance between the major supermarkets and small suppliers creates a reluctance among suppliers to push back." They are both from Grocery Commissioner Pierre van Heerden - the first from August 2024 , the second June 2025 . The nine months between the statements have produced another round of research, recommendations, and call for submissions with the aim of getting better deals for suppliers and consumers, forcing better behaviour and greater competition between the dominant Foodstuffs and Woolworths chains. The Commerce Commission's original market study was ordered in 2020, the final report published in March 2022, and law changes came into effect in 2023. The regulator looked to assist the transition through educating suppliers, offering them sample contracts to put to the supermarket chains, setting up a whistle blowing facility for those wanting to report bad behaviour, and a stern message to Foodstuffs and Woolworths to behave and play nice or risk the Grocery Commissioner's wrath. And yet the latest report concludes much as the first report - the grocery sector is not competitive and the duopoly keeps throwing its weight around, while the small suppliers remain intimidated. Grocery Commissioner Pierre van Heerden. Photo: The Grocery Commissioner has sought to engage with the two big chains and change attitudes. They have conceded most of the easy ground such as ending land banking, accepting the mandatory code of conduct, and agreeing to look at freeing up their wholesale arrangements. But clearly the original reforms have failed to cut through, hence the move to now strengthen the Grocery Supply Code to stop retailers charging suppliers for stocking shelves or for past-their-best by date groceries in the retailer's control; require retailers to reimburse suppliers if they buy stock at promotional prices, but later sell them at higher prices; and prohibit retailers from retaliating against suppliers who assert their rights under the code. van Heerden told RNZ that he had the resolve and the resources to take legal action when justified , but that bringing about change in the sector takes time. To date, the regulator has gone for the relatively low hanging fruit of misleading prices and advertising . The challenge now is to bring about real change in supermarket actions. A prosecution or two may be needed. The wild card in the supermarket debate is what will the government do. Finance Minister Nicola Willis entered the debate verbal guns blazing in March saying the government was looking at all options to bring greater competition to the grocery sector. She said that could be done either by encouraging a major new player into the sector or possibly a 'nuclear option' of breaking up or restructuring the existing chains. The government has issued a formal request for information (RFI) to accelerate improved competition, and advise on potential regulatory and legislative changes, and whether structural changes would be needed. That was an option which the Commerce Commission shied away from as being too difficult, commercially and legally. Going after supermarket chains assessed as profiteering from consumers reads well in headlines, but will the talk be turned into a walk? Or will it be down to van Heerden to make progress slowly, one supermarket aisle at a time? Gyles Beckford is RNZ's business editor. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
