NPD Announces North Island Expansion plans

We are pleased to announce that we’re expanding into the North Island!

“We’re launching our North Island network with six high profile sites, five of which are under contract. They provide us with a strong immediate geographic spread throughout the North Island and include Hamilton, Porirua near Wellington, Palmerston North, New Plymouth and two in Auckland.” – NPD CEO Barry Sheridan.

The Curious Case of Auckland Fuel Prices

Read an interesting report into North Island fuel prices by Economist Shamubeel Eaqub.

More details on NPD’s North Island Expansion

30 June 2020 – Press Release

Aucklanders are paying up to $140 million more for their fuel every year than they should be.

In a report entitled, ‘The curious case of Auckland fuel prices,’ leading economist Shamubeel Eaqub says Auckland fuel prices have not fallen as much as the national average, or many parts of the South Island.

“Over the past year, fuel board prices have fallen by 29 cents across the country, but only 24 cents in Auckland and a huge 40 cents in Christchurch.

“Unless there has been a marked change in the cost of delivering fuel and cost of doing business, it could indicate Aucklanders are paying 5-15 cents too much for their fuel (excluding the 11.5-cents regional fuel tax). We estimate such a price difference would add $45m-$140m to Aucklanders’ annual fuel bill across retail and business users,” Eaqub says.

“Within this, Auckland and Christchurch illustrate this tale best. In June 2019, Auckland prices were 10c – 15c lower than Christchurch. In the two weeks to 14 June, prices were 4 cents higher, excluding the regional fuel tax. Prices over the past year have fallen by 27c in Auckland, 50c in Christchurch and 29c nationally. These differences can cost a lot.

“The outsized price falls in Christchurch are notable. This is of obvious benefit to Christchurch fuel buyers, who are now paying a lot less for their fuel.”

Discount fuel retailer NPD asked Eaqub to look at North Island fuel prices, as the family-owned discount fuel retailer readies to expand its southern network into the North Island with a planned $100 million plus investment in 32 sites over the next four years.

Competition is the key

Chief executive Barry Sheridan says competition is the key to lower fuel prices for motorists, as proven in the South Island where NPD will have over 80 sites by the end of this year.

“North Island motorists are simply paying too much. We want to make people aware of the significant discrepancy between north and south pump prices. This clearly signifies a lack of genuine competition in the North Island fuel market.”

This sentiment is echoed by Eaqub whose analysis found that independents were most likely to locate new retail sites close to the majors.

“Independents are competing aggressively in Christchurch and Dunedin. The majority of new fuel stations to open over the past year (95% in Christchurch and 100% in Dunedin) were independents.”

He says the outsized falls in retail fuel prices over the same period confirms the Commerce Commission’s market study view that competition from independents reduces prices and benefits consumers.

“The results from our analysis on the impact of NTI (new to industry) retail fuel sites on prices and volumes of majors shows that the entry of new NPD sites appear to benefit consumers to a greater extent than new entry by other resellers and distributors.”

NPD has developed 25 new sites in the South Island in the past two years and will add a further 16 to complete its southern network.

With the North Island expansion now confirmed, NPD will open sites at Wiri in Auckland, New Plymouth and Hamilton in the first quarter of 2021. NPD’s total planned capital programme over the next four years is $146 million.

Wiri is one of Auckland’s fastest-growing industrial locations because of its central location and proximity to both State Highway 1 and State Highway 20.

NPD Announces North Island Expansion

28 May 2020 – Press Release

NPD, the South Island family-owned fuel retailer, today announced it is expanding into the North
Island, promising cheaper prices for motorists.

The first sites, in Porirua near Wellington and in New Plymouth, will be open by the end of the year.
Chief executive Barry Sheridan says NPD believes North Island fuel prices are currently too high and
have been for some time.
“We aim to bring more competitive fuel pricing to the North Island as we have in the South Island.
“Our data analysis clearly shows that North Island motorists are paying too much for their fuel – we
see this as an opportunity to bring greater levels of competition and significantly lower pump prices
for motorists.”
“Even with the Auckland regional fuel tax removed, the price of unleaded 91 last week was on
average about 15c a litre cheaper in Christchurch than Auckland. On other occasions, the differential
has been as high as 30c a litre. In Porirua last week, prices were approximately 32c a litre more than
Christchurch.”

“We expect that other fuel companies in the North Island will react to this announcement by
lowering their pump prices – particularly as we get closer to the opening our new sites. We have
experienced this in many communities around the South Island prior to our sites opening. The end
result is fantastic for motorists with strong cash savings at the pump,” Sheridan says.
NPD envisages its expansion into the North Island will contribute to more evenly aligned pump
pricing, with greater cash savings, throughout New Zealand.

NPD CEO Barry Sheridan at the St Vincent Street Self Serve fuel site in Nelson.

“We have currently committed to six high profile sites, five of which are under contract. They
provide us with a strong immediate geographic spread throughout the North Island, and include
Hamilton, Porirua near Wellington, Palmerston North, New Plymouth and two in Auckland.
Sheridan says NPD is actively searching for further potential sites that will bring value to both its
network and the surrounding communities.

NPD’s high profile designs have a strong emphasis on customers’ needs.
“They are user friendly with full weather protective canopies, multiple refuelling locations, spacious
forecourts with ease in access and exiting along with effective lighting for the safety and
convenience of all motorists,” Sheridan says.

NPD’s high profile fuel site in Rolleston, just south of Christchurch.

Over the past few years, NPD has systematically expanded its network throughout the South Island.
It now has 70 sites with a further 16 to be completed in the South Island over the next 12 months.
NPD hasn’t just confined its expansion to the main centres; it is also supporting smaller communities
that have not previously enjoyed the same discounts as their urban counterparts.

Sheridan says that with NPD’s southern network nearly complete, the time was right to start making
a difference in the North Island.

“Our North Island sites will be premium Self Serve sites – this site model allows NPD to offer cheaper
fuel that will make a positive difference in the weekly budgets of families.
“We have strategically developed our network around the South Island to provide convenience and
value to motorists – a lot of people are now recognising and benefiting from the impact NPD has
created in the retail fuel market.”
In its retail fuel market report last year, the Commerce Commission also acknowledged and
commented specifically on NPD’s positive effect in the market.

Sheridan welcomes the Government’s recently announced legislative changes for the fuel industry.
“Competition is healthy, anything that brings more transparency to the industry will be better for
Kiwi motorists.”

Who is NPD?

NPD is a family owned, Nelson based fuel retailer.
Previously known as Nelson Petroleum Distributors, NPD’s origins date back to the 1960s when the
fledgling business was a contractor carrier for Mobil fuels and Castrol lubricants. In 1996, NPD
became a wholesale distributor for Mobil – at that stage it had 11 retail sites and two trucks. Now it
is a major fuel distributor in its own right with over 70 sites.

Its sites are a mix of Self Serve and staffed retail outlets that incorporate NPD’s Refresh Café. All are
designed with a spacious forecourt, large canopy for weather protection, CCTV cameras and good
lighting for security.

Throughout its growth, NPD has been careful to retain its strong family values with a reputation built
on catering for customer needs. Its profits stay in New Zealand and are re-invested into
development and local jobs – NPD now employs more than 150 staff.

For further information, please contact:
Claire Bennett, Senior PR & Communications Advisor, 027 271 4939, claire@clairebennett.co.nz