Kiwis are racing to the pumps before a price jump of around 29 cents on Saturday.
Video / NZ Herald / Cameron Pitney / Dean Purcell / Getty
A motorist has been snapped filling up large plastic containers with cheap fuel as drivers start to panic buy ahead of tonight’s reinstatement of the tax discount.
Traffic queues are spilling onto streets outside Auckland’s cheapest service station at Westgate’s Costco, where 91-grade fuel costs $2.14 a litre.
Cars clog up streets around Westgate this morning as motorists rush to get cheap petrol. Photo / Michael Craig
Collins said people should only ever put petrol into containers designed to hold fuel.
He said there was a risk the petrol would eat into the plastic container and cause a leak or spillage of the fuel.
Depending on what the motorist did with the fuel he also risked invalidating his insurance.
“If he takes it home and stores it in his garage he can’t store more than 50 litres of fuel anywhere without having an EPA (Environmental Protection Authority) certification around storage capacity of it.
“If you start bringing large quantities into your house you could void your house and contents insurance.”
Clogged streets
Today streets surrounding the country’s only Costco were clogged for the second day running.
Yesterday the large self-service station, which can only be used by customers with membership, had up to 40 vehicles waiting in line to fill up.
The line now stretches around neighbouring roads and threatens to block the nearby Northwestern Motorway off-ramp.
Traffic has become so bad Auckland Transport this afternoon diverted a number of bus routes away from the congestion and advised passengers there would be six stops missed.
Due to heavy traffic congestion queuing for Costco Gas Station, detours are required for bus routes 122, 125, 126, 125X services. Stops missed: 5746, 5729, 5710, 5708, 5728, 5733. Expect delays. pic.twitter.com/yUOko8H7sG
— Auckland Transport Travel Alerts (@AT_TravelAlerts) June 30, 2023
‘Nice while it lasted’
At the other end of the Northwestern Motorway on Auckland’s city fringe cars are pulling into Caltex Newton Rd about every minute, where money-savvy motorists are trying to cash in on relatively cheap petrol - $2.38 for a litre of 91.
Every pump is being used, only free for a few seconds before the next car in line pulls up.
”I don’t mind waiting,” one motorist told the Herald.
”I know I’m holding up traffic [on the road] but everyone seems to understand.
”Obviously, from tomorrow, petrol’s going to go up,” she said.
Another motorist called the subsidy “nice while it lasted” saying he’d also been checking where he could find the cheapest today.
One motorist, who called herself a “cash-strapped” student, said she wasn’t expecting a “huge jump” in petrol prices tomorrow, but still wasn’t looking forward to paying more.
”I’ll have to cut back on my costs somehow - probably less going out,” she said.
”It’s been tough enough as it is with the cheaper petrol. I’ve been trying to offset costs already, I got an e-scooter.”
Another said the price increase didn’t bother them too much but was surprised at how busy the petrol station was.
”I live locally and this is the closest [station]. Seems that people are just doing what they need to do to save money,” he said.
Plea for kindness
Yesterday Simon Bradwell of the Motor Trade Association urged motorists facing queues at gas stations to be kind to staff.
Collins said the upcoming price increases would not be as severe as a year ago when prices reached an all-time high, surpassing $3 per litre for 91.
“Few people will be happy about fuel prices going up, but international oil prices aren’t currently at the highs they were when the tax discount was introduced so the impact will be lower,” he said.
Long queues have formed for Costco petrol ahead of tonight's reinstatement of the tax discount. Photo / Michael Craig
A government spokesperson said the temporary removal of fuel excise was designed to support New Zealanders through the global energy crisis last year, which saw petrol prices spike above $3 a litre.
“Petrol prices are now 70 cents per litre lower than they were in early March last year when fuel excise was removed.
“Other countries that also removed fuel excise at that time like Australia, Ireland, and Germany have already reinstated their fuel taxes as the global price of fuel has eased.”
The spokesperson said the petrol excise cut was always temporary, but was extended a number of times and has seen over $1.4 billion invested to support households through the global spike in petrol prices.
Collins said the tax relief was welcomed by the AA but it accepted it had to be added back at some stage - with motorists using the roads coughing up rather than all taxpayers.
