A new independent player will bring more competition to the service station industry but whether this means cheaper petrol for motorists has been questioned.
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The recent selling of three residential homes on Hammond Avenue, next the the BIG4 Holiday Park, means the next stage of the development process can begin.
Raine and Horne Wagga director Craig Tait said Wagga City Council's tick of approval last year has led to the recent sale of four individual properties to APCO.
"The service station will be located on 101-107 Hammond Avenue and four individual properties were just sold to a service station developer," Mr Tait said.
"APCO is based in Geelong and is an independent fuel retailer that is promising cheaper fuel.
"Demolition of the three residences should commence around April to May."
APCO will mark the 11th service station close to the Sturt Highway within about eight kilometres and brings the city's total to about 20.
A search of Wagga's unleaded petrol price on February 20 revealed the average cost was $1.22 per litre.
Resident Charles Webb-Wagg raised concerns over the service station's location due to the single lane over the Marshalls Creek Bridge.
"I think the location may be a bit tricky with traffic flow because it becomes a single lane each way over the bridge," he said.
This will take the site from an A to a triple A plus as we can expand the site and make it a better development for Wagga.
- APCO director Peter Anderson
"This will cause trucks and cars breaking to enter the service station and causing a bottle neck.
"Whether we need another one when we have so many petrol stations already and petrol prices usually stay around the same price, so I don't think it will start a price war."
Mr Webb-Wagg said the construction of the development, which could close off the highway, could be a "pain in the back" for residents.
"But, there are not too many service stations on the left side, so tourists heading east may see it as a bonus," he said.
Director and shareholder of APCO Peter Anderson said Wagga's average cost is at "a pretty good" price and the new service station would likely offer a similar price.
"Cities like Melbourne are up to $1.49 and with the fuel's travel to Wagga it's a pretty good price up there at the moment," he said.
"It will be interesting to see in the next couple of weeks what will happen with fuel pricing. But our station will bring competition."
Mr Anderson said a recent application lodged with council for a neighbouring site could see a delayed start, despite aims to begin demolition within the next few months.
"This will take the site from an A to a triple A plus as we can expand the site and make it a better development for Wagga," he said.