The Gull service station on Taradale Rd. Photo / Warren Buckland
The Gull service station on Taradale Rd. Photo / Warren Buckland
Skyrocketing fuel prices are driving people in Hawke's Bay out of their cars and on to buses, but don't expect fares to remain low forever.
The Hawke's Bay regional council has kept its fares on its Go Bus services at the same level since 2015 when petrol cost just $1.77 a litre nationally, and it says something might have to give.
Hawke's Bay fuel prices remain some of the lowest in New Zealand, but recent hikes are having big knock-on effects for families in the region - while fuel companies and the Prime Minister disagree on who is to blame for record prices around the nation.
The Allied service station in Ahuriri. Photo / Warren Buckland
Patronage has increased on buses between Napier and Hastings as commuters try to beat the squeeze at the pump, but Hawke's Bay Regional Council transport manager Anne Redgrave said fares would be up for review in November.
"The Hawke's Bay Regional Council is required to make quarterly adjustments to the bus contract price using an NZ Transport Agency indexation formula incorporating a range of transport costs, including fuel and labour," Hawke's Bay Regional Council transport manager Anne Redgrave said.
"The latest index to June added 6.3 per cent to the contract price for that quarter. The latest round of fuel increases will affect the September index, which is due for release by end of October.
"The regional council reviews fares annually, and as bus patronage has fallen over the last three years, it has held fares at 2015 levels. "
However, fares will be reviewed again in November, after the September index has been released.
"We are just starting to see some increases in bus patronage again on the commuter services between Napier and Hastings, which is probably a reflection of increasing fuel prices," Redgrave said.
Go Bus fares have not risen for three years. Photo / File
Prime Minister Jacinda Ardern yesterday told Newstalk ZB's Mike Yardley the "landing price" of fuel in New Zealand had gone up by 19c a litre since the start of the year, while the excise tax had only increased 3.5c. Oil firms, she said, were most definitely "profiteering".
However, speaking to Hawke's Bay Today Gull NZ general manager Dave Bodger said prices were determined in part by overseas politics and the price of the Kiwi dollar.
"I have never seen taxes go down and excise tax is legislated to increase for 7 cents over the next while - then you have ACC saying they want 2 cents a litre GST."
There was also, at present, five or six cents a litre of emissions trading costs in fuel prices.
"Is it likely that may go up more? I don't know but probably and that's all a huge kick in the teeth for Mrs and Mrs Kiwi motorist."
Gull stations in Hawke's Bay ranged from $2.26 in Mayfair to $2.24 in Waipukurau and $2.28 at both Omahu Rd in Hastings and at Taradale.
Bodger said the company's lowest priced North island station was north of Taupo with prices there sitting at $2.11, while its highest was $2.39 in Auckland.
On the other end of the scale, national prices (not used by Gull) in Wellington were at $2.48, while both the Waitomo and Allied stations in Napier were only charging $2.15.
Napier Family Centre marketing manager Suzanne Stewart said she was concerned any increase in fuel prices meant its clients, most already stretched to the limit, would be less likely to afford food.
"Our Building Financial Capability Service sees around 1000 clients per year. We see many clients whose budgets are stretched to the limit.
"We always remind clients to prioritise food, power and rent however when something like a rise in fuel prices happens sadly it is often the food allowance that take the hit.
"They are often surviving under really hard circumstances but health, wellbeing and opportunities to have better lives are drained when people are under constant hardship."
