New fuel brand U-GO drives down pump prices
Z Energy has launched a new self-service fuel brand. It offers Kiwis a low-cost alternative at the pump. Early signs suggest it's already shaking up the market, according to Autotalk.
The company announced the launch of U-GO on March 20. It is a fuel-only station model that strips out extras like shops, loyalty programmes and fuel cards. It therefore delivers what it describes as a 'fast and convenient self-service model'.
'We are seeing an increasing number of Kiwis who want a simplified, low-cost fuel and go option,' Z customer general manager Andy Baird says.
'The U-GO network will help us meet these customers' needs.
'We've identified a small portion of our existing network where we believe a self-service fuel station would benefit our customers, and we are working to turn these into U-GO branded sites.
'This will allow us to provide a consistent offer under the one brand. U-Go here is similar to Ampol's self-serve fuel business in Australia. Ampol owns Z Energy.
'U-GO will bring greater competition into the self-service fuel retailer market in Aotearoa, and we think that's great news for Kiwis,' Baird says.
The first U-GO site opened in April, with Z confirming more locations are in development.
'Launching U-GO is about acknowledging there is an opportunity to evolve our offers to meet a variety of customer needs. As we grow the U-GO network, our Z-branded network will remain strong.
'Both brands have distinctly different offers that will appeal to different customer bases,' Baird says.
On May 19, the U-GO station in Waikaraka, Auckland, was listed as offering the lowest price for 91 octane petrol in the country. Gaspy reported pump price of $2.29.7 per litre.
The emergence of U-GO comes as traditional low-cost players like Gull face stiffer competition. Gaspy data showed the price gap between the national average and Gull's average had narrowed in recent months. Some Auckland stations now offer nearly identical prices to U-GO.
Z Energy says U-GO will remain focused on localised, competitive pricing as it expands its presence across the country.
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