Rotorua's Scobie Tamati fills up at Challenge Malfroy Rd. Photo / David Beck
Warrants of Fitness are not being renewed on cars, families are walking instead of driving, and people are only using their vehicles for can't miss appointments as the price of petrol squeezes wallets.
A survey of 10 Rotorua petrol stations yesterday found prices of 91 between $2.187 and $2.249, while in Tauranga, between $2.217 and $2.347.
This excluded any discounts.
The diesel in Rotorua ranged between $1.457 and $1.519, while in Tauranga, between $1.397 and $1.489.
A Stats NZ insights analyst spokeswoman said for the North Island, excluding Auckland and Wellington, prices were up by 14.4 per cent in the June 2021 quarter when compared to the same time last year.
When the quarter was compared to 10 years ago, petrol prices in the North Island, excluding Auckland and Wellington, were up 0.2 per cent.
The figures were from point-on-point comparisons and prices have fluctuated during that time, she said.
Compared to five years ago, prices were up 20 per cent nationally, and 21 per cent in the North Island excluding Auckland and Wellington.
Rotorua Budget Advisory Services manager Pakanui Tuhura said many people were minimising their travel, and saving for pre-planned or necessary travel, like tangi.
Instead of using their car to take the kids to school, some are walking or cycling with them, especially if the parent isn't working.
The recent rising fuel costs affected his clients like the high costs a few years ago which he recalled were up to $2.50 per litre, however, issues hadn't risen to those levels yet.
He said households with more than one car tended to stop using one of the cars and carpool with work colleagues, friends, family or even neighbours.
The sacrifices were usually the car itself for those with one car, he said, with lower maintenance or letting their warrants of fitness expire in extreme cases.
He said if costs continued to rise to what they were a few years ago, people would have to "tighten their belts and weigh up their options".
Mobil Te Ngae owner Mitesh Patel said there were often queues lining up for petrol at his station, particularly on Tuesday when there was a 10 cent per litre discount.
When asked why his station was so popular, he said it was a combination of providing value and excellent customer service.
"Both are equally important. I'm an independent owner so I can choose my price and I try to provide value for customers."
Gull Te Ngae Rd boasted the cheapest diesel at 145.7 cents per litre.
The most expensive diesel was 151.9 cents per litre at BP Fairy Springs Rd, Z Fairy Springs Rd, Mobil Clayton Rd, Mobil Sunset Rd, and BP Fenton St.
AA general manager of motoring affairs Mike Noon said there would likely be a drop in the price of gas in the next few days, however, predicting later in the year was not possible.
The recent increase in price was linked to a range of factors, one of them being the demand for fuel as the world was opening up more post-Covid, and the other the limited supply.
Challenge Malfroy Rd customer Scobie Tamati said petrol prices were high but he was unlikely to look at alternative options such as electric vehicles.
"I'm 86, I'm too old for change now, I've just got to go with it," he said.
"The prices will get worse now that they're closing (oil refinery) Marsden Point.
"I go by convenience, that's why I always come here."
Rowan Smith, who was filling up at the Waitomo petrol station on Fairy Springs Rd said he used the self-service station because it was convenient.
Tauranga Housing Advocacy Trust board chairwoman Carol Heena said petrol was only used to get to work, and "can't miss" appointments like doctors and MSD, and people "often" carpooled to the supermarket.
She said for those on low incomes, it was another struggle people were juggling.
"Petrol has become an essential cost, just as rent, food, mortgages, electricity. The impact really affects those on low incomes."
A Ministry of Business, Innovation and Employment media spokesman said the major factors contributing to the price at the pump were the cost of crude from Dubai and the exchange rate.
Crude oil prices have risen from NZ$29.33 in April last year to NZ$104.86 for the week ending July 30.
Last year, the Government passed the Fuel Industry Act 2020 following a market study by the Commerce Commission which found several shortcomings in the competitiveness of fuel markets in New Zealand that hurt the pockets of motorists.
The act - which comes into force in stages, starting this month - sets up a regulatory regime for fuel with the purpose of promoting competition in engine fuel markets for the long-term benefit of consumers.
Some provisions in the act come into force on Thursday, namely terminal gate pricing, wholesale contract rules, and a dispute resolution scheme.
Last month, the Commerce Commission outlined its role and expectations of fuel businesses in an open letter ahead of the regime starting this week.
The commission can seek court-imposed penalties of up to $5 million if businesses do not comply with the new rules.
From February, gas stations need to display premium fuel prices on forecourt price boards and the businesses need to disclose key information to the commission to help monitor and report on the competitive performance of fuel markets.
A spokesman for the commission said the market study found that regional variation in pricing usually reflected areas with more competition.
Neither the commission nor MBIE set prices, and the spokesman said this was controlled by market forces.
Ministry of Social Development group general manager client service delivery Kay Read said they could help with buying petrol depending on individual circumstances.
Payments were not generally approved for everyday petrol purchases, however, it may be approved under various supports such as the disability allowance, temporary additional support, special needs grants, or recoverable assistance payments.
Costs could be approved to attend funeral or tangihanga, medical appointments and counselling, or when clients were stranded away from where they usually lived.
Most of the time, clients have to pay back money approved to buy petrol.
