"Fuel is a disaster for us," says Andrew Gundry, transport manager for a trucking company running a fleet of 30 vehicles in the Bay of Plenty.
"It goes before we see any value from it. Fuel goes in the tank, people go and do the jobs - it is another
Fuel subsidy extension: What Tauranga locals, businesses say about move to combat 'horrendous' petrol costs
The transport industry has been hit hard by rising fuel costs. Photo / Getty
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But a transport business owner says the Government should not have let inflation get so bad in the first place, and its latest moves will only be "a band-aid".
Other Tauranga residents said the Government had little choice but to extend the discounts, with one saying people were being forced to choose between gas and food.
Addline Transport Ltd's Gundry said the discount "will be a save for us, definitely", but felt the Government was in a position where it had to extend it.
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He said the cost of fuel was "horrendous" and the business, which offers bulk tipping and general cartage service, could not absorb it.
Self Loader Logging Ltd company director Bryan Smith said the extension was a positive move but he also viewed it as "a band-aid" to "help fix the mess" the Government created.
"It is an ambulance at the bottom of the cliff," Smith said.
"Ideally they wouldn't have let inflation get as out of control as it is. It is a stop-gap measure isn't it - and they can't let it go on forever."
The Taupō-based logging haulage company operates across Rotorua, Tauranga and the wider Bay of Plenty and Smith said fuel was a "significant" cost.
In response, Minister of Transport Michael Wood said inflation and fuel prices were rising across the world, driven by the impact of the Russian invasion of Ukraine.
"This global problem has a local impact here on households and businesses in New Zealand," Wood said.
He said the Government recognised the road transport industry's vital role in the supply chain and that it was feeling the impacts of high inflation.
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"That is why we are backing the industry through these challenging times.
"The extension of the 36 per cent road user charge reduction will reduce industry costs, and help goods continue to get to where they are needed."
Extending the fuel excise and road user charge reductions until the end of January was estimated to cost $589 million, while half-price public transport would cost an estimated $63.1m.
A Transporting New Zealand survey showed 41 per cent of about 400 transport operators said the road user charge discount made a meaningful difference to their business costs.
More than 96 per cent of respondents supported its request to the Government to indefinitely extend the discount.
Chief executive Nick Leggett said the Government's latest move was "good news all around" and would provide relief for road transport operators "who are up against it with escalating costs and nowhere to turn".
Extending the fuel excise and Road User Charges reductions until the end of January was estimated to cost $589m. The cost to extend half-price public transport is an estimated $63.1m.
Tauranga cyclist Barry Morris doesn't drive but thought the package was "fantastic".
"I cycle everywhere but my heart goes out to drivers at the moment. A lot of people I know are being forced to choose between gas or food."
James Brown thought the Government was caught between a rock and a hard place and was forced to spend the money.
"I would prefer it if they spend less, I don't think they spend very well," he said. "But I don't think that they had a choice, to be honest."
Philip Williams hoped it would encourage public transport.
"Anything to encourage bus use is a good thing."
In Rotorua, 62-year-old Robert - who did not give his surname - said anything to help those on a lower income cope with the cost of living was a good thing.
"If they can extend any tax reductions, the longer, the better. It's a good move from the Government."
Tauranga Business Chamber chief executive Matt Cowley said the discount extension was a good decision, but could not last forever.
He said fuel prices were tough for businesses with big vehicle fleets, including trades, logistics, and primary sectors.
"Businesses are sharing the burden of rising fuel costs with customers as much as possible in order to maintain relationships," Cowley said.
Discounted bus fares were necessary for those reliant on public transport, such as students and the elderly, he said.
Anecdotally, he said local workers were tackling rising fuel costs by negotiating work-from-home options or finding new jobs closer to home.
It comes as the first temporary cost of living payment of $27 weekly - for people over 18 earning less than $70,000 who do not receive the Winter Energy Payment - will go out in two weeks' time.
Minister of Finance Grant Robertson said there was no easy fix to the cost of living but it was taking actions to ease the pressure on families.
"We want Kiwis to have some certainty over the coming months in the face of volatile prices at the pump," Robertson said.
UBCO chief executive Katherine Sandford said fuel cost increases had contributed to rising demand for its 2X2 electric adventure vehicles.
Sandford said the Tauranga-based start-up had growing demand locally and across its key markets, including the United States.
"For each of the last two months we have reached a record $1m in monthly revenue, and we are set to top that again this month," Sandford said.
"The combination of fuel and economic pressures, together with a general move toward more sustainable options, means people are now more action-oriented when factoring in electric options."
Sandford said some people were thinking about getting electric adventure bikes as an alternative to a second car and many businesses were considering using alternative transport for staff.
The cost of getting around town and providing standard vehicle transport for staff was "reaching a tipping point".
Cost of living support to date:
• Fuel excise reduction of 25 cents per litre until January 31
• Equivalent reduction in Road User Charges
• Half price public transport until January 31, and permanently for Community Service Card holders from February 1
• Temporary cost of living payment of $27 per week for people over 18 earning less than $70,000 who do not receive the Winter Energy Payment.
• Increases to Working for Families, Superannuation, student allowance and main benefits from April 1
• Working with the supermarket sector so Kiwis are getting a fair price at the checkout
• Parental leave payments boosted by up to $40 a week
• Winter Energy Payment providing more than one million New Zealanders with up to $80 extra a month to help with power bills through the colder months
• Free school lunches for more than 211,000 children
• Minimum wage increases since 2017 mean fulltime minimum wage workers now earn an extra $218 a week
• GP visits are cheaper more for than half a million people, including free doctors' visits for all children under 14
• Best Start payment providing an extra $65 a week for parents of newborns
