The latest analysis has shown that unstaffed petrol stations offer genuine benefits for New Zealand motorists.
Latest fuel monitoring data from the Commerce Commission has shown that this new wave of petrol stations has offered increased savings and brought down prices.
Areas with at least one unstaffed fuel station within a five-minute drive have prices that are, on average, six cents per litre lower than areas without unstaffed stations.
Despite this, unstaffed stations run by supermarkets have a different effect on competition.
"Our findings reinforce that unstaffed stations are definitely the way to go for cheaper fuel, and anyone who has had one open in their area has probably experienced lower prices," said Brian Chappelle, commissioner at the Commerce Commission.
"New Zealanders spend around $10 billion at the fuel pump every year, so even a small price reduction can put money back into Kiwis' pockets."
Chapelle stated that local councils should consider the competition benefits of unstaffed sites in the planning processes and when considering consent applications.
"We're seeing competition at work, and it's useful for Kiwi motorists to be aware of. Whether they're driving to work, dropping the kids off at school, or heading on holiday, every dollar counts, and it's a pretty good bet that an unstaffed site will be your cheapest option," said Chappelle.
"This pricing pressure – and motorists choosing to shop wisely also creates an incentive for staffed sites in the local area to reduce their prices."
Although consumers benefit from unstaffed food sites, the broader range of services and food at staffed food sites are unavailable.
The Commission's latest analysis follows the September issuing of a 'please explain' letter to fuel companies asking for further information to help account for pricing anomalies in the fuel market.
This analysis gathered information from major fuel companies on fuel terminals, trucking, and retail site costs. The Commission also used data from the fuel pricing app Gaspy to assess the effect on local fuel prices when an unstaffed petrol site opened.
Over time, the Commission expects to see the opening of more unstaffed sites, which would push fuel companies to drop prices better to reflect the cost of operating both staffed and unstaffed sites.
This represents the future of the service station industry and the potential it could have to slash fuel prices for New Zealanders.
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