Bay petrol pump pain: Foreign disruption causes concern closer to home

Pāpāmoa resident Neil Alberts believed the price hike would cause pain at the pump for local families. Photo / George Novak

What sacrifices will you need to make if your household budget is hit by a large rise in the price of petrol? Drone strikes in Saudi Arabia have pushed up the price of fuel at some pumps and a national warning of a possible $3 per litre has some saying it will hit everyone in the pocket. Reporters Jean Bell and Cira Olivier speak to those worried about how a rise will impact them and their businesses.

Commuters and transport-related businesses are bracing for pain at the pump as fuel prices surge in the Bay of Plenty.

Petrol companies throughout the country raised their prices in response to a drone attack on a vital Saudi Arabia oil facility on the weekend.

A survey of 10 Tauranga petrol stations yesterday found prices of 91 between $2.037 and $2.219 while a survey of 12 Rotorua petrol stations found prices of 91 between $1.94 and $2.09.

Pāpāmoa resident Neil Alberts said the fuel price hike would have a significant impact on his family, along with "98 per cent of other families".

"We use cars all day and most families have at least two cars."

The jump followed the steady price increase the South African immigrant had seen since he arrived in New Zealand 15 years ago - when it arrived, it was 98 cents and now stood at over $2 a litre.

He was not the only commuter to be affected.

Rotorua's Mark Palmer's work commute to Tauranga cost between $160 and $200 a week. Palmer filled up in Rotorua which he said was "way cheaper" than Tauranga.

Rotorua resident Mark Palmer commuted to Tauranga for work and spent up to $200 a week on petrol. Photo / Cira Olivier

He would have to rethink his living situation if the price of petrol increased. He would struggle to save and would need to make cuts to his food budget.

"I might need to find a new job, it's quite expensive to get over there," he said.

Meanwhile, Tauranga Freight Services owner Geoff Seavill said increased fuel prices would be transferred to consumers.

He spent around $8000 to $10,000 on fuel for his small fleet of eight trucks, but said for larger companies "every cent counted."

He believed Saudi Arabia would be working hard to fix the oil facilities and said hype around the issue would not help.

"It's just life. We don't have a lot of control over it."

Mainfreight Rotorua general manager Gregg Conning said a price rise would affect everyone and everything. The company had already absorbed some of the cost.

"It's a massive impact, more to the customers and the owner-drivers because they run their own trucks," he said.

Customers would be "dramatically" affected, including local dairies, liquor stores, industrial businesses, and the hospital.

"Without trucks, New Zealand stops really."

He said the long and short-term impact would depend on the increase's size and how long it lasted for.

Tauranga Freight Services owner Geoff Seavill. Photo / File

Te Ngae Mobil Rotorua owner Mitesh Patel said yesterday had been particularly busy as people filled up after warnings the price of fuel could creep up to $3 a litre.

He said customers were not happy but the global rise was out of station owner's hands.

Mitesh said, as an owner, he would try to keep the prices low but he was unsure how long he would be able to operate on a lower margin.

Tauranga Taxi operations manager Jacqui Coffey believed the company's drivers would not be sweating the price increase as their fleet was all hybrid vehicles.

She said the company had switched to hybrid vehicles around 18 months ago due to the rising cost of petrol.

Rotorua Taxi Society chairman George Melrose said there would be no change to the price of a taxi trip in the short-term but that could change in three months if fuel prices remained high.

"Drivers will certainly suffer . . . they will lose money but they would just have to absorb it."

AA principal advisor for regulations Mark Stockdale did not believe fuel would hit the $3 per litre mark and the price jump was likely to be short-lived in the Bay of Plenty, like the rest of the country and world.

He said other sources would be able to offshoot the decrease in supply due to the Saudi Arabia attacks.

Z and BP both added 6 cents per litre to their fuel prices in response to the Saudi Arabia attacks.

Spokespersons from Gull, Mobil and Z said future fuel prices could not be predicted.

Gull said it would raise not its prices until the weekend, while BP said fuel availability was not affected at this stage.

Caltex said the company was operated by independent retailers who would set their own price.