An Ampol service station has been proposed for the empty lot at 26 Houtman Street in East Wagga, which backs onto the busy thoroughfare.

The plans include the construction of a servo capable of fuelling eight cars at a time as well as a 200 square metre convenience store.

The business would be located just 500 metres away from two other fuel stops and would be the 11^th on the stretch of the highway that passes through Wagga.

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Multiple new petrol stations have opened up in recent years across the city and another is currently under construction on Dobney Avenue.

Paul Seaman, the owner of Swift Service Centre, admits he is perplexed at the number of competitors that have been popping up.

"There's just a glut of service stations and it feels like there's a new one every year," he said. "I don't know what's going on or what they're gearing up for."

The independent petrol station owner guessed that the influx could be tied to the region's rapid growth but admitted he wasn't sure.

Glenn Board is the owner of Riverina Sharpening Centre, right next door to the proposed business.

He admitted he was a bit surprised by the plans considering the close proximity of a BP truck stop and United service station.

"There's already one 150 metres that way and another one about 150 metres the other way," Mr Board said.

Mr Board welcomed the development, which he said would help fill an under-utilised space.

"It would be good to see something go in there rather than a big bare paddock," he said. "Definitely won't hurt my business."

The application for the service station comes as petrol prices skyrocket across the world, with the cost of regular unleaded fuel in Wagga soaring above $2 this week.

Mr Seaman said the extra competition brought by more petrol stations is unlikely to bring down local fuel costs, as many of the larger brands stick to their prices regardless of nearby competitors.

In 2019, a development application was approved for the construction of $4 million of industrial warehouses on the lot, however no works ever began.

The 13,000 square metre lot was then sold for $1.8 million in September 2021.

While the lot is officially considered 26 Houtman Street, it is suggested in the development application that the service station will also provide access to vehicles from the Sturt Highway.

The proposed Ampol petrol station will operate 24/7, employing two staff throughout the week and one on weekends and overnight.

There will be carparking for 11 vehicles on-site, including one disabled space.

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