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Home / New Zealand

Middle East conflict: Rotorua businesses cut costs to combat fuel crisis

Annabel Reid
Annabel Reid
Multimedia journalist·Rotorua Daily Post·
17 Apr, 2026 06:00 PM5 mins to read
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Associate Energy Minister Shane Jones says they remain confident about New Zealand's fuel supply, but remain ready to act further if necessary. Video / Ryan Bridge TODAY

Rotorua businesses say they are cutting costs as fuel prices climb and supply fears grow.

They are carpooling, reducing idle time and ramping up security to stop diesel theft.

Rotorua Business Chamber chief executive Melanie Short said some businesses were making tough decisions about keeping and hiring staff.

Others were losing contracts, facing supply disruptions and tighter cash flow.

Businesses were “hesitant” to make medium to long term plans because of the “uncertainty”, she said.

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“This is the number one theme in the feedback we are receiving and the constant message I am relaying to the Government,” Short said.

The Rotorua business community was “genuinely feeling the impacts” of the Middle East conflict, she said.

In its update on fuel stocks on Wednesday, the Ministry of Business, Innovation and Employment (MBIE) showed New Zealand had 25.3 days’ worth of petrol in-country, 20.8 days’ worth of diesel, and 21.3 days’ worth of jet fuel.

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When taking into account fuel on water - ships arriving in New Zealand within three weeks - there was 56.3 days’ worth of petrol, 45.4 days’ worth of diesel and 47 days’ worth of jet fuel.

Petrol and diesel prices increased from February 2026 to March 2026, with petrol prices up 18.6% month-on-month while diesel prices increased 42.6%.

Prices for these two fuel types also increased in the 12 months to March 2026 – petrol was up 13.9% and diesel up 36.9%.

The increases in petrol and diesel prices this month were the largest for both fuel types since Stats NZ started publishing monthly price movements for vehicle fuels in July 2011.

Forestry pushes for priority status in Government fuel response

Forestry firm Kaingaroa Tipu said it wanted forestry recognised as a “critical sector” in the Government’s Fuel Response Plan.

Chief operations officer Dean Witehira said fuel availability underpinned regional economies.

“It’s important to us, our contractors and our customers that decision-makers understand [this].”

He said recognising forestry as a critical sector would ensure its needs were considered in any future prioritisation decisions.

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Witehira said it was a “challenging” time, with the company working to “minimise disruption” to supply and delivery.

Planning already assumed fuel prices would remain elevated into the next financial year.

Witehira said it was regularly reviewing work programmes and logistics to respond quickly to changing conditions.

He said the company was focused on “practical fuel efficiencies”, including combining trips, carpooling, prioritising maintenance and reducing idle time.

Dean Witehira, chief operating officer for Kaingaroa Tipu. Photo /Supplied
Dean Witehira, chief operating officer for Kaingaroa Tipu. Photo /Supplied

Witehira said Kaingaroa Tipu was also working with police and security partners to address concerns around fuel theft, which was increasing across the country.

Electronic gates installed across Kaingaroa Forest had led to “a massive drop-off” in theft and unauthorised access. Patrols had been increased in hotspot areas.

Iain Cossar, Ministry of Business, Innovation and Employment chief operating officer, said New Zealand was in phase one of four phases of the Fuel Response Plan, which meant there was “minimal impact on fuel distribution across the country”.

As of Friday, “fuel supply remains sufficient, with good levels of fuel in New Zealand and more on the way”.

Cossar said MBIE understood how fuel prices impacted businesses.

The agency was working with businesses, key sectors, the fuel industry and frontline services as planning continued for stages three and four of the Fuel Response Plan.

Fuel would only be prioritised to specific groups if “absolutely necessary”, Cossar said.

Businesses were invited to give feedback on proposed priority groups. Submissions were now closed.

“We are now analysing the feedback and will provide options to Ministers for decisions.”

Food distributor’s fuel bill nearly doubles

Bidfood Rotorua’s fuel bill increased by about 44% in March.

General manager Scott Green said the business ran a large delivery fleet across the Bay of Plenty and East Coast, with about 15 trucks on the road six days per week.

He expected April’s bill to be “much higher”.

“It’s an upward battle, but we’re trying to be as fair as we can across the board,” he said, referring to how much could be passed on to customers.

Green said rising fuel costs were adding pressure alongside increases from transport-reliant services such as rubbish collection.

To manage the impact, the business was making small operational changes, including reducing truck idle time and combining delivery runs, which allowed one truck to be taken off the road.

He said it had considered adjusting services but did not want to go down that path, and was taking the changes “week by week”.

 Rotorua Business Chamber chief executive Melanie Short (left) asks Prime Minister Christopher Luxon and Rotorua MP Todd McClay questions concerning local business leaders. Photo / Michelle Cutelli Photography
Rotorua Business Chamber chief executive Melanie Short (left) asks Prime Minister Christopher Luxon and Rotorua MP Todd McClay questions concerning local business leaders. Photo / Michelle Cutelli Photography

Government advice

Asked by the Herald whether New Zealanders should be concerned, Christopher Luxon said the Government was in conversation with fuel importers every day and had “very good visibility” over the next three weeks.

He described it as “not material at all” and repeatedly sought to reassure New Zealanders there was “no risk of disruption to our future fuel supply”.

The Energy Efficiency and Conservation Authority (EECA) has fuel-saving tips on its website.

These include combining trips, avoiding unnecessary idling, keeping tyres properly inflated, driving smoothly, and reducing heavy loads where possible.

Annabel Reid is a multimedia journalist for the Bay of Plenty Times and Rotorua Daily Post, based in Rotorua. Originally from Hawke’s Bay, she has a Bachelor of Communications from the University of Canterbury.

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