Workers, businesses, and families in the Bay of Plenty will be hit hard by the pressure of rising fuel costs caused by conflict in the Middle East, experts say.
The average price for fuel across the country on Friday was $3.07 for 91 and approaching $3 for diesel, Gaspy director Mike Newton told Ryan Bridge TODAY.
Priority One chief executive Dave Courtney said the rise in fuel prices was expected to have a broad, flow-on impact across the Western Bay of Plenty.
The region’s reliance on transport and freight, combined with dispersed supply chains and a large commuting workforce, left it vulnerable to ongoing cost pressures and could begin to slow economic activity.
For many businesses, higher fuel costs translated directly into increased operating expenses.
“As margins tighten, businesses will face difficult decisions about whether to absorb these rising costs or pass them on, a shift that could contribute to broader inflationary pressures across the region.”
RotoruaNZ head of strategy and investment Justin Kimberley said higher costs would inevitably add pressure to households and businesses, especially those reliant on transport, but the full impact was still unfolding.
But a strong summer and the rebound in international tourism had kept the local economy moving.
Tauranga Community Foodbank manager Nicki Goodwin warned rising costs would hit households unevenly, and the fallout would likely appear in coming days.
“We anticipate that people who are struggling already will face some real hard financial challenges, and people who normally manage will find it difficult to do so.
“We know that the food budget is normally the first thing to reduce when faced with extra costs, travellers, and this time will be no different.”
Port of Tauranga spokeswoman Rochelle Lockley said fuel supply remains stable, with rising transport costs the main pressure at this stage.
She said the port had yet to see evidence of higher fuel prices affecting freight flow, but as they moved into peak kiwifruit and dairy export season, it was closely tracking diesel-related operating costs. Surcharges might be considered if high fuel prices persisted.
User numbers surged for fuel price comparison app Gaspy, and Newton, who is based in Tauranga, said activity tripled on a usual quiet day.
“The site typically sees around 50,000 unique users on a quiet day, with busier midweek periods reaching roughly 100,000. [On Monday] we had over 300,000 unique users, and Mondays are not usually that busy for us.”
He said users’ reports on fuel prices had climbed 50%.
Newton said the Bay of Plenty’s prices made it the cheapest region in the country to buy fuel, but that lead was shrinking. Regional price gaps varied about 25 cents before the Iran war and were now about 13 cents.
Oropi Gull owner Dee McKinley said the past week had brought noticeable shifts in customer behaviour.
“We had an extremely crazy Thursday last week. The girls and I had to work until 10 o’clock at night, just for traffic management basically.”
She said demand had dipped this week, largely because she initially held off on increasing her prices while others moved early.
Uncertainty in the market was making operations increasingly difficult, as customers did not know what would happen next, how long it would last, or how big a financial hit they would take.
After briefly being the cheapest in town, she said she now found herself among the most expensive.
Customer reactions were getting “a little negative”, but she still had staff and overheads to take into consideration.
“No one’s in business to lose money.”
A manager of a Rotorua Mobil, who did not want her name or specific workplace identified, said the station had not experienced any supply issues so far, and pricing was largely out of their hands.
“We’re sitting back watching like everyone else, waiting to see what happens.”
AA principal policy adviser Terry Collins said the price of petrol had gone up about 45 cents a litre in the past two weeks, and diesel about 70 to 75 cents.
He said international tensions disrupting global oil supply affected prices at the pumps.
For many people, cutting back on driving was not always possible.
People in metropolitan areas with good public transport, bike options, or short commutes could cut back on driving, but those in rural areas depended on cars.
Collins said prices could lift slightly, but markets pointed to the worst being over.
He urged motorists not to panic-buy fuel.
“The major message is we’ve got plenty of fuel ... both in the country and on the water. And we’ve got time with our reserves to see what happens.”
A Z Energy spokesperson said demand had risen in the past week and staff were working to keep fuel moving to where it was needed.
The instability in the Middle East had created volatility in global energy markets, but the impact on local supply remained minimal.
An Uber spokesperson said the company was aware rising fuel costs were putting pressure on its workers.
It would continue to monitor conditions and regularly reviews ways to support its driver partners as circumstances change.
Source: AA New Zealand
Zoe Blake is a multimedia journalist at the Bay of Plenty Times and Rotorua Daily Post.