Source: Radio New Zealand
The most up-to-date figures showed that there was 18.1 days of diesel in the country, with a further 28.3 days worth on ships bound for New Zealand. 123RF
A rural fuel distributor says strict allocation rules at certain ports mean it is needing to prioritise distribution to those who need it most.
The most up-to-date figures showed that there was 18.1 days of diesel in the country, with a further 28.3 days worth on ships bound for New Zealand, but an update is due to be released Monday.
Fern Energy chief executive Chris Gourley told Morning Report people were trying to beat the price by filling up early, and in some cases by hoarding, which was creating demand spikes in certain regions that could not be met because of new allocation rules.
“Importers have said to us that in some ports, they are managing that fuel to make sure it lasts until that next boat comes in, and they’re giving us strict … seven-day allocations.”
He emphasised it was not a problem of supply, but increased demand.
These allocation rules meant that sometimes there was not enough fuel where it was needed, and distributors were forced to bring it in from other regions, which slowed it down, he said.
They were also prioritising deliveries based on need, which was especially important at this critical part of the farming season, Gourley said.
“They are harvesting, they are working through that final stages as they work towards winter … so we are trying to prioritise based on that need, and trying to get to those customers before it becomes dire and they lose their crops.”
Federated Farmers spokesperson David Birkett previously told RNZ up to 95 percent of farming machinery used the fuel.
The hops season had just finished, so recently they had been prioritising that industry, Gourley said.
It was also the middle of the grape harvest season, and there was a huge amount of food in the ground that needed to come out, he added.
The forestry industry was also struggling, but that was more about cost and less about fuel demand, he said.
“Some of them are actually saying ‘do you know what? We’re going to just pull up and stop working until this settles down’.”
It would be “useful” for the government to start telling certain ports how to allocate their fuel, he said.
“(In) three or four weeks when the supply issue settles, it could be too late for some farmers … There could be some need immediately, if it’s possible, to improve allocations for distributors like Fern, so we can get on and get fuel to farmers quicker.”
He was confident that there would not be any issues around supply to the country, but reiterated that allocation was a concern
“Supply isn’t going to be an issue for New Zealand. Sustained high prices is what we’ve got to focus on next.
“The crisis is a price shock crisis.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
