Emergency services feel the heat from rising fuel cost

Rising fuel prices are hitting the pockets of the emergency services, causing the Fire Service to take money from areas such as travel and put some projects on hold.

The Fire Service has estimated it will have to increase its fuel budget for the next financial year by about 50 per cent despite callout numbers staying steady, as a direct result of fuel increases in the past fortnight.

The New Zealand Fire Service chief financial officer Brett Warwick said the increases meant the Fire Service was already running $400,000 over budget for the first three quarters of the year.

He said the 2005/06 budget was about $1.5 million for its 800 fire engines and about 200 utility trucks, with an extra $600,000 in road user charges for diesel vehicles.

He anticipated next year he would have to increase the budget to $2.3 million.

"It's just the cost of doing business. But we will always be there. We haven't cut back on maintenance or any safety areas."

Money from other areas which were under budget - such as travel and accommodation - had been used to make up the shortfall.

The use of some consultants had also been put on hold and some projects delayed.

While the Fire Service paid slightly less than the retail cost for fuel it was still prone to price rises.

Other organisations and companies were also making efforts to save fuel by cutting down on non-essential travel in staff cars.

Telecom spokesman Phil Love said the company had bought a hybrid Toyota Prius car and was monitoring its fuel usage before deciding whether to replace some of its 700-strong fleet.

He said an in-house campaign had also encouraged staff to do "face to face" meetings via webcams rather than driving to see staff in other centres.

In some rural areas, fuel has inched to 180c a litre, because of the extra costs of transporting the fuel.

One Herald reader reported petrol selling at Tairua for 178c a litre on Easter Monday, while the price at another station half an hour away was 164c.

President of Federated Farmers Charlie Pedersen said farmers bore the brunt of the fuel increases, because they paid more than urban dwellers both for petrol itself and groceries and goods in rural stores.

However, the low New Zealand dollar also boosted the value of exports such as meat, dairy and wool.

"So our income will be higher and there will be a little bit more money to go around in the rural economy than over the past 12 months."

All oil companies cited a further increase in the costs of crude and refined oil over Easter as responsible for the rise, combined with uncertainty of supply because of unrest in Nigeria and the ongoing possibility of US action against Iran.

Automobile Association motoring affairs manager Mike Noon said the latest increase was no surprise but it now cost about $15 more to fill a small car with a 50- litre tank than it did in January.

"So it's pretty yuck, isn't it? Maybe if any accolades can be given, it was pleasing to see at least they let people get home after Easter. But right now motorists are pretty much hurting with yet another 6c increase."

BP spokeswoman Diana Stretch said in the past month there had been a 22 per cent increase in the international costs of refined and crude oil.

Over the same period, petrol prices rose by 13 per cent, so the company was still absorbing some of the increase.

AT THE PUMPS

* Petrol prices rose again by 6 cents yesterday, just a week after the last 6 cent rise.

* BP put its prices up yesterday morning to 167.9c for 91 and 172.9c for 96.

* Other stations quickly followed suit, with the exception of Gull which has kept its prices down but said it would review the decision today.

* Diesel stayed the same price at all outlets, although some BP outlets put the price up by 2 cents for a short time in the morning.