Petrol prices are soaring amid conflict in the Middle East. Photo / Corey Fleming
Local authorities in Rotorua say they are prepared to handle the ongoing fuel crisis.
Escalating conflict in the Middle East has disrupted commercial shipping in the Strait of Hormuz — a key global oil route.
According to figures from the fuel price comparison website Gaspy, unleaded 91 has risen by 35% over the past month, and diesel has risen by 77%.
This week, Associate Energy Minister Shane Jones announced Australian standard fuel would now be allowed into the country to ease supply, and Finance Minister Nicola Willis announced financial aid for about 150,000 families via a Working for Families boost.
The issue was raised in last week’s Rotorua Lakes Council meeting, with concerns over providing core services, such as bin collections, should the situation worsen.
Rotorua Mayor Tania Tapsell told Local Democracy Reporting this week that rising fuel costs were hitting household budgets.
“We recognise many people are already feeling the pressure of rising fuel prices, adding to an already high cost of living, and we appreciate how difficult this is,” she said.
Tapsell said the situation signalled the need to accelerate local resilience efforts.
“The current fuel situation is a timely reminder of the importance of building self-sufficient and sustainable communities,” she said.
Tapsell highlighted projects such as investigating geothermal and biogas development, as well as the council’s incoming Food Organic and Green Organic (FOGO) waste service.
Responsibility for maintaining the national fuel supply rests with the Cabinet, she said, but local councils were looking internally at fuel use and costs.
Tapsell said the need for clear contingencies, including prioritising fuel for essential services and public transport, was emphasised in discussions with other local government leaders and central government.
Council chief executive Andrew Moraes said the organisation was taking a data-driven approach to the evolving situation to make “informed decisions”.
Moraes said the council was reviewing fuel consumption and costs against the same period last year, and developing a response framework to guide decision-making if conditions change.
Essential services would be prioritised, with the community to be updated if any impacts emerged, he said.
Lessons learned during the Covid-19 pandemic would also inform the council’s approach.
“The technology and processes we used during lockdown and periods of reduced service enable our workforce to be flexible,” Moraes said.
“That will be part of the business response plan that we develop.”
Bay of Plenty Regional Council chief executive Fiona McTavish said its business continuity plans were already being implemented.
“Essential services are being prioritised, and we will continue to act in accordance with any national direction received,” she said.
Public transport services in the Bay of Plenty are so far unaffected, with Baybus operations continuing as normal. McTavish said any changes would be communicated to the public through established channels.
She also pointed to longer-term shifts already underway, including the council’s investment in electric and hybrid vehicles and the promotion of alternative commuting options such as carpooling.
Flexible working arrangements were also being used where appropriate to reduce travel demand.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.
- LDR is local body journalism co-funded by RNZ and NZ On Air.