Junee is set to double its number of service stations within the space of months.
United Petroleum has lodged a development application to council to reopen its former site on Broadway.
It comes after independent group Junee Fuels opened on Seignior Street earlier this month.
Junee’s petrol prices have long been significantly more expensive on average than Wagga’s, with fuel available for up to 12 cents less in Wagga for most of the month, forcing money-conscious motorists out of town.
NRMA spokesman Peter Khoury said local competition doubling would greatly benefit local motorists.
“This will make all the difference for Junee,” Mr Khoury said.
“You only need to look at the history of regional petrol prices to see the massive impact increased competition can have, especially when its being driven by independents.”
Mr Khoury said a Costco fuel service drove average Canberra prices down by 20 cents after it opened in late 2014, while Dubbo prices dropped by 15 cents per litre following the opening of a new independent station.
“The only way independents can compete is on price, so adding two independents would be very positive news for Junee.”
Junee resident Steve Webb welcomed the dramatic increase in competition.
“Before this (Junee Fuels) opened I usually made a point of going to Cootamundra, Temora or Wagga while travelling for work, because they’re up to 12 cents cheaper,” Mr Webb said.
“I would make a point of filling up in Junee every morning if the prices were right because I want to see the town do well and I’d rather support Junee than any other town.
“I need to fill up nearly every day as a part of my business, so it’s a big part of my overhead and I need to pretty careful.”
The proposed reopening of United comes after the company opened its Broadway site in May, only to close down less than three weeks later.
At the time a United Petroleum executive said the site was not up to scratch and the company would complete an upgrade with plans to reopen “late this year or early next year”.
United has since declined to comment.
The development must be publicly advertised before works go ahead due to the site being in a heritage conservation area.
Extracted from Southern Cross
