Fuel providers NPD and Gull announced a proposed merger of the two entities on Wednesday, December 24.

The decision now sits with the Commerce Commission as they decide if the merger will increase or decrease competition in the market.

Both companies are already low-cost providers, so, it is hoped the proposed merge could lower prices for consumers.

Customers have been awaiting a fuel price drop for a while now, as oil prices have fallen, but the change has not been seen at the till. 

AA Fuel spokesperson Terry Collins told Andrew Dickens, "it's the largest margin I've seen between landed price and retail price, and these companies, what they need to do is not just offer discounts and specials on particular days, but we need to see across the board drop in our fuel prices currently."

LISTEN ABOVE