Two low-cost fuel providers plan to merge, creating the country's largest majority Kiwi-owned fuel company

Under the deal, NPD and Gull would combine their sites, teams and supply chains, while keeping both brands operating separately across a combined 240 locations.

Current NPD owner and chief executive Barry Sheridan would lead the new company.

The merger is subject to Commerce Commission approval, with an application for clearance expected to be lodged in January.