Levin Community $400,000 pa better off - What Competitive Pressure Brings
Quantifying the “Gull effect”
Auckland, 14 June 2013 - Levin is one of many communities community experiencing what has been described by the Automobile Association as the
“Gull Effect”. The opening of the Gull unmanned fuel outlet in July last year has dropped the price of the fuel sold in
Levin by up to 7 cents per litre.
Comparing Levin petrol prices versus the standard national price charged by the major oil companies during March and
April of this year indicates Regular 91 octane prices have fallen by an average of 4.4 cents per litre. Today, Gull
Levin’s price for 91 octane petrol is $1.989 per litre.
Dave Bodger, General Manager Gull New Zealand, estimates that around 9.3 million litres of ‘91’ is being sold to private
motorists annually in Levin (based on the number of vehicles in Levin at the 2006 census and excluding the passing
highway traffic).
“A saving of 4.4 cents per litre equates to $409,000 annually across all of Levin. The 2006 Census data showed there
were 5,001 households in Levin. Quick maths puts this saving at $82 per household annually.
“Competition has enormous benefits,” notes Bodger.
“By opening we have enabled Levin’s motorists to (collectively) keep hundreds of thousands of dollars annually in their
pockets. It doesn’t matter where you get your fuel, if Gull is in your community, you will pay less for it. We are proud
to be able to bring a new level of competition to the region.”
ENDS