A new player in the South Island petrol market could force prices down.
Gull, who is credited with helping drive down prices in the North Island, has announced it will open its first South Island store this July in the Otago town of Maheno.
General Manager Dave Bodger told Mike Hosking they have plans to add another 30 or 40 more South Island outlets.
He believes it will bring down pump prices.
"It's been observed by independent people where we will go into an area where we are not and the opposition will drop their prices. In New Plymouth, they dropped the day we opened actually, came down about 0.20 a litre."
He does not believe their competitiors are operating at a loss as a result.
"I don't think they are taking a loss. They are able to meet those prices when there is competition, and that's the whole thing. Competition is good for the motorist."
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