Fuel stocks update

On Wednesday MBIE reported diesel stocks were confirmed as 45.4 days cover, down from the 49.1 cover reported earlier in the week. MBIE noted the departure of “one small ship” has been delayed. Fuel companies confirmed the supply chains continue to operate, but noted that these kinds of delays are likely to become more common. 

Fuel Response Plan Phases

Some media coverage has called for a move to Phase 2 of the Fuel Response Plan. Phase 2 is described as “the market continues to operate effectively and fuel is available nationwide, but there are signs of significant supply disruptions”.

The Fuel Response Plan also sets out the  government criteria that would lead to a Ministerial assessment meeting to determine if a move between Phases was required. Rather than a single trigger-based approach, all of the criteria will be taken into account in the assessment.  I recommend transport operators familiarise themselves with the plan.

It is important to note that Phase 2 does not contemplate prioritising fuel distribution, it is about stepping up fuel conservation efforts and further shoring up of supplies.  National Road Carriers has asked for notification to industry of any Phase changes to be provided with as much lead time as practicable.

Supporting transport operators when the cost of diesel has doubled

National Road Carriers has a wide diaspora of membership. We have approximately 1500 members, who work across all of the transport sectors, operating 1 truck or hundreds, serving customers of all types and sizes.

Calling for a one size fits all response from government is rarely the right thing to do, especially when it comes to financial support.

The government has been clear: they are not going to reduce Road User Charges (RUC) or providing fiscal support – the coffers are empty. Discounting RUC is not the right thing to do, it just robs our roads of maintenance and repair, and we are already behind.

Riding out the doubling of diesel prices is going to come down to freight customers doing the right thing and paying transport operators for the increases.

Transport operators also need to play fair and be transparent about how they are passing on fuel costs with their customers, and the fuel adjustment factor  (FAF) is one tool available that helps do that.

Help us understand where fuel cost recovery is working and where it is not

In our conversations with government officials, they often ask what are the impacts of the doubling of diesel to transport operators. 

At NRC we want to make sure that across our broad membership base we are passing on an accurate view of what our members are experiencing so please take 5 minutes to email us your answers to the following questions below

The better picture we have, the more we can work with government on your behalf to help.

1. Have you been able to pass on diesel cost increases to your customers?

2. If not, what are the reasons are that fuel costs can’t be passed on?

3. Do you feel your sector is experiencing more difficulties than others that we should know about?

Justin Tighe-Umbers, Chief Executive, National Road Carriers Assn