Rising fuel prices threaten New Zealand trucking businesses, an industry association said.
The New Zealand Trucking Association reports that fuel has surpassed labour as the top expense for trucking firms. It now makes up 30% of operating costs—an increase of 8–10% since the recent Middle East conflict.
NZ Trucking Association chief executive David Boyce described the fuel cost surge as deeply concerning.
“It’s pretty tough out there… For some, this will be the straw that breaks the back, so to speak,” he said.
“But it’s a pretty resilient industry. There will be plenty that will hang on and hope that this is only a short-lived blip on the radar.”
Boyce highlighted “wild fluctuations” in prices, with diesel up 35% this week. He warned that these higher costs won’t take long to pass through to consumers.
“Transport operators run pretty lean and mean on their pricing. There’s not much wriggle room for them to absorb costs, so they really have to pass it on to their customers straight away,” he said.
Boyce expressed confidence that diesel shortages won’t occur, noting New Zealand holds about 25 days’ supply locally, plus another 29 days en route.
“Assuming that the supply that’s coming here is not interrupted or compromised, we’ll be covered. But if some of those ships get redirected or some untoward act happens, things could change quickly.”
Meanwhile, the Commerce Commission is intensifying its monitoring of fuel prices and will address any concerning pricing practices.
ComCom said it will post updates on its website tracking retail fuel price shifts against import cost changes.