Wednesday, January 21, 2026

AA backs NPD–Gull merger to bring lower fuel prices

AA says Gull-NPD merger will lower fuel prices

The Automobile Association (AA) says a proposed merger between fuel retailers NPD and Gull could put downward pressure on petrol prices if approved by the Commerce Commission.

The deal would create the country’s largest independent, majority New Zealand-owned fuel company, combining 240 sites while keeping both brands intact, with NPD owner Barry Sheridan leading the merged business and Allegro Funds retaining a 50 percent stake.

AA policy advisor Terry Collins told state media both companies operate low-cost models that have historically forced competitors to cut prices, arguing that efficiencies from shared supply chains, terminals and logistics should translate into savings at the pump.



He added that with international oil prices having fallen, retailers should be passing on larger reductions to motorists in early 2026 unless major geopolitical disruptions intervene.

Image credit: ClickerHappy

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10 COMMENTS

  1. We should be buying up cheap Russian oil and using Marsden Point to make our own petrol.
    Won’t happen though as all our “leaders” are on their knees to the Western “elites”

  2. I believe the merger will bring a lower buy price. However, as time passes and a distribution business has no local competition, a much higher retail price is inevitable.

  3. No. Other than a brief promotional period the merger will reduce competition, increase profits for the merged companies, and make no difference to the ridiculously high prices Kiwis pay for fuel.

  4. I”m retired now so don”t drive very much, after paying high rates and insurance costs, not to mention power bills there is nothing much left from the meager pension for food and maintenance costs. I won”t sell my home or my well earned assets just to be able to survive in this country. New zealand was once a desireable country to call home.. Not so now..

  5. Merging two companies will save the consumer money. Yeah, right!

    No, two companies will merge creating one larger company. That new entity will then be swallowed up by a bigger petrol retailer and the NZ public will be duped again into paying high prices.

    Anyone care to remember Challenge? Started off well, but then got swallowed up by Caltex. Where’s Challenge now with their cheap petrol?

    • EXACTLY!
      Remember the local power Cos? Giving you even shares, lol.
      Then gobbled up by global entities.
      It’s a club, and you are not part of it.

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