Fuel pricing in Timaru to get hotter

Timaru’s crowded fuel market is set for a shake-up as two more selfservice outlets near completion.

Waitomo and Tasman Fuels are setting up at either end of Timaru, on State Highway 1, with both expecting to be pouring before Christmas, bringing the number of outlets in the town to at least 15.

‘‘We are bringing competition to the town, and looking at the prices it looks like you need it,’’ Waitomo’s chief operating officer, Simon Parham, said.

He said comparing with the prices being offered on Thursday, they would be selling 91 at 18 cents cheaper and diesel at 20 cents cheaper from their new Hilton Highway/SH1 site at Washdyke, if it was operational.

‘‘That is not introductory pricing, they will be kept low sustainably, not just for a week or two.

‘‘We are looking forward to bringing competition to the market in Timaru.’’

Parham said they were ‘‘pretty excited’’, with the outlet to open before Christmas, ‘‘hopefully not Christmas Eve’’.

The outlet will have four dispensers with three pumps – 91, 95 and diesel – on each side.

‘‘The site is also being futureproofed for electric vehicle chargers, and [we] hope to have them installed within the next 12 months.’’

Parham confirmed their supply contract was with Mobil, and was the ‘‘same as everyone gets’’ with product picked up from either Timaru, Christchurch or Dunedin.

Waitomo originally confirmed plans for a Timaru outlet three years ago, saying then it hoped to open in May-June 2020 at a different Washdyke site to where it is now.

Parham said the original site at the intersection of Meadows Rd was unworkable, with Waka Kotahi NZ Transport Agency wanting them to install traffic lights.

At the southern end of town, Tasman Fuels, the marketing brand of Timaru Oil Services (TOS) which owns a large fuel tank farm at PrimePort Timaru, has a small selfservice operation on the corner of King St/State Highway 1 and Leckie St due to open on December 9.

Tasman Fuels chief executive Philippe Dubau said their new station would add to the competition locally. He said they are in the last stages before opening.

‘‘It is a small service station supplying 91 and 95 petrol and diesel.

‘‘We think it is enough for what people are looking for in that they can go to a site, get the product as cheap as possible and get out. It is small and efficient.

‘‘We realise there is a bit of competition in the market there, but nonetheless we think we can bring some more.’’

The Timaru site will be the company’s second outlet, with the first one just south of Christchurch.

Dubau said they have plans for multiple sites around the South Island.

‘‘We want to build a network in the South Island.’’

Dubau said their tank farm terminal at the port was the newest of its kind in New Zealand.

‘‘It really is a beautiful piece of work. It’s a good Kiwi South Island story with all the work by New Zealand engineers and built by Kiwis.’’

TOS imports its fuel mostly from Singapore and South Korea,’’ he said.

‘‘We mostly sell to companies. The wholesale and retail sales are two separate markets, so it is not uncommon to have this situation.’’

‘‘We are bringing competition to the town, and looking at the prices it looks like you need it.’’

Simon Parham

Waitomo Group’s chief operating officer