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Home / New Zealand

Fuel fury: Increasing petrol prices starting to hit home for many New Zealanders

Luke Kirkness
By Luke Kirkness
Sport Planning Editor·NZ Herald·
10 Oct, 2018 04:00 PM4 mins to read

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Focus: Who is getting fleeced at the petrol pump?
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      Inflated fuel prices throughout New Zealand are starting to hit home as taxes increase, the Kiwi dollar weakens and crude oil costs jump.

      The pinch from the pump is forcing many families to spend less on groceries and cut out of town visits. The transport industry is warning that rising fuel bills will shortly be felt across the economy as costs are passed on to consumers.

      Earlier today Prime Minister Jacinda Ardern said the Government would not bail out the nation and remove petrol taxes.

      "We have seen an increase [in fuel prices] over the past year of almost 39c and in that period of time excise has been 6.8c of that," she told media.

      "If we remove the 3.5c tomorrow, I cannot guarantee that would be passed on to consumers."

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      On Monday Ardern declared consumers were being "fleeced" by fuel companies but refused to budge on easing the excise tax.

      In an attempt to resolve the issues around fuel prices, the Government has prioritised the passing of the Commerce Amendment Bill.

      This bill would amend the Commerce Act to enable the Commission to undertake market studies.

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      But in the meantime, many New Zealanders have been forced to make significant lifestyle changes to avoid reaching into their back pockets.

      Recently widowed and a solo parent, Lisa Cropp wrote she had driven from Auckland to Nelson to put a headstone on her husband's grave and was now making her way back up the North Island with her children.

      "Added gas costs mean we have had to miss out on activities we would otherwise have enjoyed and instead of cooking, I am serving up canned food to afford the trip home," she said.

      "Also when school goes back, I go back to work and have to use my personal vehicle to get to the various schools around Auckland."

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      With only 52c/km reimbursement for vehicle use, she said it was a real struggle.

      "Getting to work to make the money comes first, rent second and food third."

      The major fuel companies deny overcharging consumers, pointing out the rising cost of the product and the weakening New Zealand dollar.

      New Zealand could be in for an economic shock as higher fuel charges push up the price of nearly all retail goods.

      The price of fuel is putting the pressure on New Zealand's trucking industry as companies attempt to manage costs, industry spokesmen said.

      Independent economist Cameron Bagrie said rising petrol prices are "siphoning money out of consumers' wallets and adding to distribution and transport costs".

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      "It's a losing trifecta at the pump with a combination of rising international oil prices, a lower dollar and lifts in fuel taxes," Bagrie said.

      In Northland the cost of fuel is forcing some midwives to turn down pregnant women living in rural areas.

      College of Midwives Northland chair Nicole Pihema told Newstalk ZB, midwives were not taking women in certain areas because they were unable to afford the fuel.

      She said she travelled more than 2000km in the past week and filled up her car three times.

      "Recently, I've had to not take a woman who lived quite a fair distance away, she had no transport so she couldn't even meet me halfway," Pihema said.

      "That's an effort her family will have to try and make because we simply can't get there, its just too far."

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      Fuel prices fluctuate throughout New Zealand with motorists paying a difference of up to 20 cents from one town to the next.

      Yesterday, Gull in Taneatua near Whakatāne boasted the cheapest fuel in the country, the station charging only $2.10 a litre for 91, $2.21 for 98 and $1.40 for diesel.

      Meanwhile those living the luxury life on New Zealand's islands like Waiheke and Great Barrier paying up $2.80 and $3.40 for 91 respectively.

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