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Amaroo finally getting its servo

By Gungahlin Al - 22 May 2009 15

It’s more than two years since it was built, but the Amaroo service station is finally opening.

GCC has been pursuing with ACTPLA the problem of the promised servo not opening and published details of our efforts in GunSmoke and on our website in October when we called for the lease to be revoked – much to the disgust of owner Renato Cervo. I’ve had to field some ‘interesting’ phone calls…

But Mr Cervo rang this week to inform us that he has signed United to open the business, and works are under way now on the site to get it operating. Given this will also be the local shop for a lot of Amaroo, Forde and Bonner residents and people attending the schools over the road and nearby sports fields, no doubt the business will be very popular.

It’s also good that United is coming to Gungahlin – it will help overcome the stupid situation the planners have given us with the two major petrol chains positioned opposite each other – negating any chance of price competition and causing chronic traffic problems. United will help bring a little price competition to our region.

Now if we can just get the site on Flemington Road released – Harrison still doesn’t have anything like a corner store…

What’s Your opinion?


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15 Responses to
Amaroo finally getting its servo
SpellingAndGrammar 10:02 pm 06 Jul 09

The Amaroo Servo is now open for business. Hours are from 6am to 10pm – good stuff. And they seem to be cheaper than Ginn St too.

Ryan 1:15 pm 23 May 09

Whoops – meant to quote one of the comments on Ginn Street in my last post, before making that comment on the extension of Crinigan.

Ryan 1:13 pm 23 May 09

H1NG0 said :

They COULD do something about this – construct the last part of Crinigan Circle. But that’s just my logical thinking..

Felix the Cat 9:02 pm 22 May 09

There is already a third servo in Gungahlin, has been for some time, the Caltex at Gold Creek.

Wasn’t it posted on RA a while back that the roof at the Amaroo servo is too low for delivery trucks to get under?

dvaey 2:56 pm 22 May 09

I know it might be a bit of wishful thinking, but I dont suppose a brand new shiny servo would bother installing ‘pay at the pump’ pumps? Id imagine since most of the income is from the expensive products in the shop though, that we’ll still be stuck with no* pay-at-the-pump services in the ACT.

* Woolworths exclusively accepting their own payment methods doesnt count.

Qbn Gal 2:36 pm 22 May 09

“guy names Cervo owns a Servo?”

Very clever p1, but I think you’d find that Cervo is pronounced Chervo

gunslingr 12:44 pm 22 May 09

With two nearby servos, in Phillip for instance, the lower-piced one would match the other fairly rapidly.

I reckon Gungahlin Al has a bit of a point here, although I’d hardly say that two servos situated next to each other stifles competition. What does make sense though, is that without a direct line of sight there would most likely be some delay to the inevitable price-matching, as the servo would have to rely on other sources for a price report. I’d imagine area managers specifically drive past competitors while doing their rounds (at least, they always used to), changing prices as they arrive at each store.

caf 12:25 pm 22 May 09

Unless of course they also watch each other and match when one puts the price up, knowing that they are then safe to do so without loosing business.

In this case their incentive would be to keep their price where it is, because they know they’d be attracting most of the custom. What they’d lose in margin they’d more than make up in volume.

Similarly there’s an incentive for the first station in that instance not to put their price up, since they know they’d lose most of the business (as long as the lower price is still profitable).

p1 11:47 am 22 May 09

If one of them could get away with charging a higher price, then that would show a lack of competition.

True. Unless of course they also watch each other and match when one puts the price up, knowing that they are then safe to do so without loosing business.

Does anyone else chuckle to themselves every time they hear that a guy names Cervo owns a Servo?

Holden Caulfield 11:45 am 22 May 09

From what I can gather service stations in Canberra tend to follow a pattern of “competitiveness” anyway.

Obviously I don’t see all the servos in town, but based on my observations, Shell Curtin and BP Phillip are often at the cheaper end of the scale. All the Braddon servos are at the mid-upper range and BP Kingston plus the Belconnen servos are hit and miss, sometimes very well priced, but not that often.

The independent Caltex at Lyneham fluctuates wildly for some reason. One day it will be close to the cheapest fuel in town, it seems, then the next day it will raise its prices by as much as 15 cents, when no other outlets in town have done the same. I like supporting them, but their pricing has become strange and erratic over the last 12 months.

caf 10:47 am 22 May 09

They can see each other, and therefore respond immediately to any changes. A bit of physical separation means there would be a delay before they find out. I have never seen a cent difference in price between the two.

That’s almost the very definition of perfect competition.

If one of them could get away with charging a higher price, then that would show a lack of competition.

H1NG0 10:45 am 22 May 09

I agree with Gungahlin Al. The two servos have never been competitive with their prices. I decide which one to go to depending on whichever one is the least busy or easiest to get into. The traffic on Ginn St is a nightmare at times.

Gungahlin Al 9:47 am 22 May 09

I disagree Caf. They can see each other, and therefore respond immediately to any changes. A bit of physical separation means there would be a delay before they find out. I have never seen a cent difference in price between the two.

Then there is the issue of Ginn St being only about 50m long, straight off busy Gundaroo Rd. The 2 servos opposite each other causes chronic traffic problems during peaks, people can’t get in or out of the stations, causing banking up back into the main drag. And all of this compounded by them allowing a Hungry Jacks in the Shell rather than it being free-standing up in the planned food outlet area.

caf 9:10 am 22 May 09

Umm, having the servos positioned opposite each other is the *best* way to foster price competition.

Holden Caulfield 8:56 am 22 May 09

Yay, it’s good that dirty fuel is now available in Gungahlin too!

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