Northern Advocate
  • Northern Advocate home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Sport
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport
  • Property
    • All Property
    • Residential property listings

Locations

  • Far North
  • Kaitaia
  • Kaikohe
  • Bay of Islands
  • Whangārei
  • Kaipara
  • Mangawhai
  • Dargaville

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Kaitaia
  • Whangārei
  • Dargaville

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Northern Advocate

Transport charges unlikely to drop

By Imran Ali
Northern Advocate·
22 Jan, 2016 05:00 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Caltex on Western Hills Drive

Caltex on Western Hills Drive

Northland's road transport sector has ruled out an immediate fall in charges despite fuel prices plummeting to their lowest levels in nearly seven years, citing higher operating costs.

Another fuel price reduction on Tuesday prompted service stations around Northland to discount their prices, with Mobil Kamo the cheapest for 91 petrol at $1.59 and diesel at 77 cents per litre yesterday.

The last time both commodities were selling at those rates in Northland was in 2009 and 2007 for 91 and diesel respectively.

International crude oil was selling at US$27.82 per barrel yesterday.

The national prices, excluding discounts, yesterday were $1.80 for 91 and 93 cents for diesel, AA PetrolWatch spokesman Mark Stockdale said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Mr Stockdale said had the New Zealand dollar stayed the same as it was a year ago, the pump price for 91 would have been about $1.65 a litre.

The NZ dollar fell more than 13 cents in the last year, offsetting lower petrol prices. Whangarei had a fairly competitive petrol market so the pump price in the district was likely to be lower than the rest of Northland.

"But unlike diesel, petrol prices would never get as low as the pump prices in January 2007 ($1.38/litre), thanks mostly to petrol taxes having risen 28 cents per litre since then," he said.

Advertisement
Advertise with NZME.

On how long petrol prices were likely to stay low, Mr Stockdale said it was really difficult to say but signs were definitely looking good.

"The reason crude prices are down appears a lot to do with concerns about a slide in the global economy. They don't seem to go away but a caution though that a falling New Zealand dollar is having an impact on petrol prices."

Mr Stockdale said the issue of a corresponding fall in public transportation charges was an interesting topic but one which was best answered by the likes of freight companies.

"I think AA's position is consumers have rightly been asking why a drop in fuel prices, particularly diesel prices, are not reflected in transport costs?

"Clearly, fuel costs of transport companies have fallen significantly in the last few months and consumers understandably should start reflecting on the prices they've been paying," he said.

Road Transport Association New Zealand upper North Island spokesman Keith McGuire said historically most transport companies have been on the receiving end of sustained higher fuel prices.

They have had to constantly absorb increasing costs for road user charges, insurance, and wages that did not generally come down, he said.

"Some operators may be making a bit more money but then there are other costs that offset their profit. Fuel is just one component of their costs."

He said the association's members were being asked why they were not reviewing their rates accordingly.

Sustained lower fuel prices, he said, may lead to some getting to a point where they could review their charges.

Advertisement
Advertise with NZME.

"Transport operators are also having to reinvest in new equipment to remain competitive in the current market," Mr McGuire said.

"Our most recent transport operator cost index actually shows that the reduced fuel costs have been mostly offset by increases in other areas."

Mr McGuire said if transport rates were reduced too much, it could force more operators out of business.

Save

    Share this article

Latest from Northern Advocate

Premium
Northern AdvocateUpdated

An epic, wild 218 days: Meet the family of six who walked the length of NZ

24 May 12:11 AM
Northern Advocate

How one man's passion for tradition and giant kūmara is empowering Northland youth

23 May 05:00 PM
Northern Advocate

News in brief: Police name victim in fatal SH12 crash near Matakohe

23 May 05:00 PM

The Hire A Hubby hero turning handyman stereotypes on their head

sponsored
Advertisement
Advertise with NZME.

Latest from Northern Advocate

Premium
An epic, wild 218 days: Meet the family of six who walked the length of NZ

An epic, wild 218 days: Meet the family of six who walked the length of NZ

24 May 12:11 AM

An inspiring, astonishing adventure, including being mistaken for missing Marokopa family.

How one man's passion for tradition and giant kūmara is empowering Northland youth

How one man's passion for tradition and giant kūmara is empowering Northland youth

23 May 05:00 PM
News in brief: Police name victim in fatal SH12 crash near Matakohe

News in brief: Police name victim in fatal SH12 crash near Matakohe

23 May 05:00 PM
Premium
Joe Bennett: The power of one name

Joe Bennett: The power of one name

23 May 05:00 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • The Northern Advocate e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Northern Advocate
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The Northern Advocate
  • The New Zealand Herald
  • The Northland Age
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
TOP