Fuel price surge hits Dannevirke trucking and farm sector

Dannevirke Carriers owner Nigel Castles said fuel prices were a major concern for the business.

A family-owned Dannevirke transport company says the soaring price of fuel is a cost it can’t absorb.

Owner and director of Dannevirke Carriers, Nigel Castles, said he felt “horrible” and the situation – which has seen massive increases in the cost of petrol and diesel since the Iran war broke out – was “not pleasant” and hurting the bottom line for many businesses in the district.

He said that the increase in running costs had added an estimated $1000 a day for the company’s fleet of 11 trucks.

“Farmers and transport operators carting goods off farms know that fuel plays a big part,” Castles said.

“We have been through these ups and downs before, so have probably got better measures to cope a little bit easier.

“Unfortunately, it increases costs for everyone; no one makes any more profits.

“You have got to have factors in place to cover the cost and unfortunately pass it on.”

Castles said the company’s trucks travelled across the country with livestock, bulk cartage orders, general freight, bailage, hay, timber, wool, grain and metal.

Dannevirke Carriers is as fuel-efficient as it could be, and communication is the key to saving money, he said.

“We’re trying to talk with clients about what they need and how urgent things are and what the plan is.

“Not wasting trips is the best way to put it.”

Fuel-supply concerns have gripped the country following the effective closure of the Strait of Hormuz due to the Iran war – through which much of the world’s oil supply is carried.

On Wednesday morning, fuel-tracking app Gaspy listed the price for diesel from $2.52 a litre to $2.76 in Dannevirke.

Meanwhile, 91 petrol ranged from $2.96 to $3.03 a litre.

Fuel stations across the country have seen an increase in price almost daily. Photo / Rafaella Melo

Tararua Federated Farmers president Aaron Passey said farmers should now be trying to save fuel where they could.

“We are pretty reliant on fuel; there are not a lot of alternatives out there that we can use on farm, effectively and efficiently.

“Unfortunately, we are in a position where we can’t pass that cost on like other fuel users can.”

Passey said it was important to use the right equipment and ensure a job was essential.

“We can try and save fuel, we certainly can’t eliminate it from our costs, and certainly can’t reduce it by the amount it’s gone up.”

He said farmers needed to focus on what they could control and maintain their supplies.

“If people haven’t got fuel to be able to feed out or go and check their stock, it could quite quickly lead to animal welfare issues.”

Michaela Gower joined Hawke’s Bay Today in 2023 and is based out of the Hastings newsroom. She covers Dannevirke and Hawke’s Bay news and loves sharing stories about farming and rural communities.