Terry Collins: AA Principal Policy Advisor on U-GO offering customers cheaper petrol options than Gull

The tide looks to be changing for Gull as the leader of low-priced petrol offerings.

Fuel-finding app Gaspy is reporting Taupo's Gull Ātiamuri has been undercut by Z-Energy's Waikaraka U-GO in South Auckland.

AA Principal Policy Advisor Terry Collins says Gull paved the way with its New Zealand- owned self-service model. 

He explained it has a low cost entry, with electronic payment options meaning stations don't need staff - and the fuel's there. 

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Episode Transcript

Speaker 1 (00:00):
The text of rolling in on the old punishment. We'll
get back to that. It's eighteen past five. Now listen
on petrol for a long time if you want us
to find cheap petrol where you needed to go as
Goal in Atsa Yamuri. But not anymore. And now there's
talk that the old Gull effect in totality might be
over and their prices are only about two and a
half cents cheaper than the national national average.

Speaker 2 (00:19):
Now.

Speaker 1 (00:19):
Terry Collins is AA's principal policy advisor on this, Hey, Terry,
after what has happened? Is is this just a one
off thing? Or is Goal genuinely not an outlier anymore?

Speaker 2 (00:31):
No, Gal, I've done such a good thing that encouraged
all the other independence to join them. So now instead
of having the Gal effect, we've really got the independence effect.
So we've had Wayitomo, MPD and others join them. New
Zealand owing companies because of the business model, which is
a low cost entry. You only have to have the
land or the place to have the service station. You've

(00:53):
got electronic pain options now available to you don't need
any staff, and you've got the fuel there, so that
means you can a buide fuel very cheaply and the
margins very small. And it's been such a good business
model where all the other independents are joining them.

Speaker 1 (01:09):
So has Goal put up its prices or is it
still holding the line?

Speaker 2 (01:13):
Now it's still holding the line. That's now just a
group of them operating the room. In interesting Gold used
to be owned by a company called Ampole, who now
bought Z and Z now putting you go another low
cost model.

Speaker 1 (01:27):
So Z is you go from Z?

Speaker 2 (01:30):
Yeah? Yeah? And that's and so owned by Ampole, and
Ampole had to sell Goal to buy Z because they
would have had more than fifty percent of the market share.
So it's really interesting how I mean I put it
this way. I think when Gold came they took the
service out of service station and made itself service. We've
still got those type of two distinct business models now

(01:52):
self service mpds by Tono Allied, and then you've got
and Goal, and then you've got you Go Sorry, and
then you've got saw your Mobile BP and all the
other ends or competing offers.

Speaker 1 (02:04):
Way do you fill up terry?

Speaker 2 (02:07):
I always get the cheapest one on a real events,
which I do. I went to a Go and Meta
matter a couple of weeks ago that actually had the
cheapest fuel, and I got a cup of coffee in
the sandwich. That was my perfect trisector. And so I
went there and got a bleeder of dining one. I
think it was two dollars study seven. But I just
looked when you were a look on it. I look
at Gasby, we were dunis going to be and go right,

(02:29):
that's the cheapest one around. I'll buy some. Unless I
think it's going to be cheaper next week. I usually
fill up brilliant Terry.

Speaker 1 (02:35):
Thank you very much. Terry Collins, I principal policy advisor.
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