The Government will move the country between four levels, or phases, using a list of criteria such as the amount of fuel in the country or on its way here.<\/p>\n
We are currently at Level 1, which means the Government is monitoring global developments and sharing information about ways to reduce fuel use.<\/p>\n
At Level 2, the Government would promote voluntary reductions in fuel use, such as \u201cwe might suggest that taking discretionary road trips wasn\u2019t the best idea\u201d. <\/p>\n
At Levels 3 and 4, there would be restrictions on fuel, to make sure there was enough for essential services, such as hospitals and for food supply.<\/p>\n
Willis said, \u201cwe wish to avoid\u201d reaching Level 3 and 4.<\/p>\n
\u201c[Currently] there is enough fuel in the country, and will be for some weeks,\u201d she said, encouraging people not to stockpile.<\/p>\n
\u201cYou don\u2019t need to worry there won\u2019t be enough fuel to fill up.\u201d<\/p>\n
Truckies on diesel prices<\/p>\n
Mark Stockdale, policy and advocacy adviser at Transporting NZ, which advocates for about 1100 truck companies, said diesel prices were increasing globally much more quickly than petrol prices.<\/p>\n
\u201cThat\u2019s probably because diesel is the fuel of the economy, not just in New Zealand but the world over.<\/p>\n
\u201cWe are dependent on diesel to move goods.\u201d<\/p>\n
Transporting NZ’s Mark Stockdale.<\/p>\n
The high demand was \u201cpresumably because of stockpiling\u201d amid concerns about global shortages, and because countries \u201cknow they need diesel to run their economy\u201d.<\/p>\n
\u201c[Diesel has] never been higher than petrol,\u201d he said, in New Zealand.<\/p>\n
Truck companies could not absorb that cost.<\/p>\n
\u201cIt is just impossible for any company to wear that.<\/p>\n
\u201cSo they need to be talking to their customers about reviewing their contract rates.\u201d<\/p>\n
Many truck companies had a fuel adjustment factor (FAF) in their contracts, he said, allowing them to adjust their fees according to diesel costs.<\/p>\n
\u201cCustomers [of transport companies] are likely to then pass that on in terms of the price of the goods that they are selling, which might be the supermarkets and the big-box retailer and all that sort of stuff.<\/p>\n
\u201cSo, this isn\u2019t only impacting trucking companies; this is impacting the economy and ultimately New Zealand consumers.\u201d<\/p>\n
There were simple ways for individuals to cut back on petrol use, such as leaving a car at home more often or using public transport, but it was harder to reduce diesel use when it came to moving goods and keeping an economy going.<\/p>\n
Barker Trucking owner Michael Barker, from Central Hawke\u2019s Bay, said he was paying about $150 a day more to operate his diesel truck.<\/p>\n
He had a fixed-term, fixed-price contract, which meant he had to absorb that cost. Fortunately, he said, that contract would end soon.<\/p>\n
The added costs would eventually flow through to consumers.<\/p>\n
\u201cIt will be a delayed reaction, but it will happen.\u201d<\/p>\n
The owner of a small Napier trucking company, who did not want to be named, said its diesel costs had doubled in a month.<\/p>\n
\u201cYou can\u2019t [carry that]; you have to pass that on somewhere.\u201d<\/p>\n
Truck companies would have to apply higher FAF rates for customers.<\/p>\n
\u201cThat\u2019s going to come on everything.<\/p>\n
\u201cSo, that means your food goes up, everything goes up.<\/p>\n
\u201cThat is going to hit everyone in the pocket.\u201d<\/p>\n
The main reason petrol costs more than diesel, usually, is that it has a built-in 77c tax per litre.<\/p>\n
Diesel vehicles do not pay that tax, but instead pay road-user charges (RUCs).<\/p>\n
The trucking company owner wanted to see the Government ease RUC costs until the diesel price came down.<\/p>\n
Another problem the firm faced, during trips to Auckland from Napier, was that some towns had run out of diesel in the past week.<\/p>\n
\u201cSo [the drivers] are very concerned about not getting to the next town, let alone getting home.\u201d<\/p>\n