Atiamuri first made a name for itself in hydro power. Now it's cheap fuel that's putting the tiny village back on the map.

The small rural community on the bank of the Waikato River holds the title of the cheapest place for petrol in the country, according to petrol price comparison app Gaspy.

Gull Atiamuri – 45 kilometres north of Taupo – was selling 91 unleaded for $2.107 a litre last week. Three hours north, in central Auckland, it's 30 cents dearer.

Gaspy founder Larry Green says Gull, which consistently sold cheaper fuel than its competitors, used a cunning pricing strategy.

"Gull has a consistent brand strategy to appear the best of a bad bunch and it's worked well for them," he says.

"They are certainly not getting the wholesale fuel cheaper than any of their enormous competitors."

He says it's a cheap and clever plan.

"They only ever have to be 0.02c cheaper than the next worst price to remain the good guys."

This kept them in the top-ranked stations on Gaspy, says Larry.

Petrol at Gull Atiamuri is the cheapest fuel in New Zealand. Photo: Tom Lee/Stuff.

This is not the first time Gull in Ātiamuri has held the crown of cheapest fuel. In May it was selling unleaded 91 for $1.807 a litre, more than 10c cheaper than the next cheapest Gull.

Auckland Uber driver Harpreet Singh says there are only two petrol stations he fills up at – Gull and Waitomo.

The only time he uses another petrol station is when he is desperate and even then he puts only the bare minimum into his tank, he says.

"If I'm in an emergency I don't fill my tank full."

Instead he puts in $20 or $30 until he has the opportunity to get to one of the discount stations, he says.

Waitomo, headquartered in Hamilton, is preparing to open its first station in Wellington.

The company, founded by managing director Jimmy Ormsby's grandfather focused on supplying commercial customers until it moved into retailing about five years ago.

Fuel prices are at record highs and fuel price disparity between different regions is now the subject of a Government investigation.

Economists warned that record fuel prices could send annual cost of living increases above two per cent for only the second time since 2011.

Prices have risen by about 40c a litre in recent weeks. About a quarter of that is due to increases in taxes, including a regional fuel tax in Auckland.

Harry says since the regional fuel tax, national excise levy and subsequent price hikes sent the price soaring he had been spending up to $100 a week more on fuel.

Petrol prices are eating into his take-home pay and he is now considering giving up being an Uber driver to become a truck driver.

Gull general manager Dave Bodger says for 20 years it had been able to undercut its competitors' fuel prices thanks to its low-cost model.

"We keep our overheads low and keep our eyes on selling fuel rather than coffee and fuel discount cards," says Dave.

It kept marketing and public relations to a minimum and nearly half of its 84 petrol stations were unmanned, he says.

"To me it's not rocket science."

Gull imports refined fuel into terminals at Mount Maunganui from Singapore and South Korea before trucking it to its stations, more than 30 of which were in Auckland.

Gull's 91 octane is the same as others available on the market, while its 98 octane, which makes up only about 15 per cent of sales, has 10 per cent ethanol added.

Atalili Junior Atalili says he fills up at Gull because it has the cheapest fuel. Stuff found Atalili filling up his work car at Gull in Kingsland.

"I know this place is always cheap," Atalili says.

The South Auckland resident, who was in the city for a meeting, says since the recent fuel price rises he is putting $40 of fuel in his car every two days, in order to distribute his costs.

He says he used to fill up every fortnight.

"But now the prices are crazy you have to distribute your money."

He says he is looking at downsizing to a more fuel efficient car.

Intervention was needed and was pleased to hear the Government was investigating fuel prices, he says. "I'm hoping that's going to materialise."

Fuel companies had been ripping off motorists for too long, he says. "They are just milking us for every cent we're worth."

-Stuff.co.nz/John Anthony