Trucking Firms Concerned At Reported Delay In Dropping Fuel Prices

Published: Tue 11 Jun 2024 06:04 PM
Road freight peak body Ia Ara Aotearoa Transporting New Zealand is concerned by a Commerce Commission analysis, showing fuel retailers are slow to bring prices down in response to global oil prices and exchange rate changes. The Commission’s analysis found this lopsided approach leaves Kiwis paying more for longer than they should - for up to two weeks, costing around $15 million per year.
Transporting New Zealand Interim Chief Executive Dom Kalasih says that it’s vitally important that cost reductions are passed on promptly to motorists through lowered retail prices, to keep the cost of living pressures down.
"Road transports almost 93 percent of New Zealand’s freight, so the price our trucking operator members pay for diesel has an impact on the price of goods for businesses and consumers across the country."
Kalasih says that at a time when road transport operators are reporting low demand and increasingly tough economic conditions, lower fuel prices would be a much needed boost for road freight companies and their customers.
"Fuel is generally the second biggest cost for trucking firms, second only to wages. For a truck/trailer unit doing 140,000km per year, a 10 cent per litre reduction in the diesel price can mean a $7,000 cost saving per vehicle, that flows on to freight customers."
"It’s vitally important that our fuel market is healthy and competitive, and we are pleased that the Commerce Commission is closely monitoring the pass-through of costs by fuel companies. Particularly as the Auckland Fuel tax is removed on 30 June."
Kalasih encourages any road freight operators with concerns about their fuel pricing to contact the Transporting New Zealand membership team for a free fuel analysis.

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