Source: Radio New Zealand
Town of Waitangi on Chatham Island. Vk2cz / CC BY (https://creativecommons.org/licenses/by/3.0)
Chatham Island council is meeting this afternoon to try and come up with a way to soften the blow as diesel prices jump a dollar a litre for the isolated community.
Meanwhile, in Waiheke Island, petrol prices are sitting [https://www.rnz.co.nz/news/business/590158/foodstuff-s-petrol-stations-continue-to-offer-discounts-despite-stores-running-dry close to $4 and the main Waiheke ferry is making some timetable changes to accommodate increasing fuel costs.
Petrol stations across the country are seeing a bump in drivers filling up amid fears over the Iran war and potential shortages, but Chatham’s runs slightly differently.
The islands ship petrol and diesel to the island. It’s heavily reliant on diesel as the main form of fuel to power the island.
Chatham Islands Enterprise Trust chief executive and council interim CEO Bob Penter said diesel was at $2.29 per litre and petrol at $4.50 per litre before the conflict in the Middle East.
He said they have capacity to store 400,000 litres on the island, but the problem will arise when they have to buy more at the current prices.
“Diesel has experienced much greater price increases rather than the increases we are seeing with petrol, so diesel is where we are experiencing most of our pressure at the moment.
“The higher prices are starting to flow through to what we need to purchase to top up our on island supplies, so we will have to consider over the next few days, looking at when we need to announce price adjustments and the price is obviously likely to increase.
“It’s risen about a dollar in purchase cost.”
But Penter is determined not to put that increase directly on islanders.
“The main concern for us is if we are able to soften the blow for Chatham Islanders, rather than the price climbing up a steep faced waterfall, if we can have a bit more of a gentle slope with gradual increases rather than a sudden shock.”
“We will give people as much forewarning as we can of any price changes. It won’t be a price at 11.59pm and another price at 12am and they don’t find out till morning.”
He said because the island had some resilience with storage and stock levels there was hope.
“We can potentially absorb some of the price increases from the new stock coming in as we release the old stock, so its just how we manage that in terms of a timing pathway and ensuring that we are meeting our purchase price that we have to pay.”
Chatham Islands was already the most expensive place to buy petrol in New Zealand before the conflict at $4.50.
He said it had to be that price because it was a expensive and dangerous process to get it.
“Petrol is probably ok at the moment because we do have some reserves… we are watching it really closely… if the current pricing structure we are seeing for petrol in New Zealand continues then I’m afraid inevitable it’s going to flow through to the Chathams and what we are able to price petrol for.”
As for the Hauraki Gulf, ferry company Fullers said despite the rising costs they have no current plans to make changes to the pricing.
It said they will make timetable changes to some destinations so they can ensure a reliable and sustainable service.
Fullers said it will revert to its off peak timetable slightly earlier than planned, starting Saturday.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
