Waitomo, the fuel company known as a market disrupter because it brings more competition and drives prices down, is coming to Nelson and expects to be pumping fuel by the end of November.
The family-owned fuel company that was born in Te Kuiti has purchased the Mobil stations in Stoke and Tāhunanui, after searching for a site for years.
Nelson has been called out by the Commerce Commission and the Automobile Association in the past for having some of the most expensive fuel in the country. But prices have dropped in recent months and Waitomo’s chief executive, Simon Parham, says that is typical when Waitomo enters the market.
“It happens in every market. The competitors have obviously got wind that we are coming, and prices have suddenly got more competitive.
He says Waitomo is a low-cost fuel operator, with unattended pumps, no convenience stores and without the overheads of the larger fuel companies, enabling it to offer sustainable low-priced fuel.
“With our entry there as a low-cost fuel operator, we can do that and we’ll ensure that the good people of Nelson will always get a fair deal on the price they get.”
When Waitomo has entered the market in other regions, fuel prices have dropped by 20 to 30 cents a litre, but that has already happened in Nelson in the past few months, he says.
He says the average driver spends between $3000 and $5000 of fuel each year, which means that 20 to 30 cents a litre adds up.
Asked why Nelson – and Tasman – have had some of the highest fuel prices in the country in the past, Simon says he simply doesn’t know.
“Maybe because sometimes when you look at their petrol prices, it’s because they can. It’s as simple as that. With us entering the market, it will ensure there’s competition for the future in Nelson.”
For Tasman motorists, Waitomo is still searching for a site and he says the Nelson-Tasman region is difficult to find suitable sites. The land is closely held and has a premium price tag, especially where it’s suitable for a petrol station on a busy road.
“You find us a property and we’ll come and develop it.”
He says there is a huge uptake in Waitomo’s mobile app when it enters a new market and he expects Nelsonians will do the same so they can ‘spin and win’.
“We’re excited to come down and open the sites, meet the people and show you what we can do when it comes to offering fuel.”
Waitomo has plans to open another seven petrol stations around the country before Christmas, and next year a further 10 to 15 sites.
