The Star: May 24, 2018

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4 Thursday May 24 2018 Latest Christchurch news at www.star.kiwi The Star News City fuel prices reach record high Consumers warned cost of food could rise • By Julia Evans UNITED STATES president Donald Trump is being blamed for the record high price in the city’s petrol. Yesterday, some Christchurch service stations were charging $2.299 a litre for 91 octane petrol, the record high which was reached on Friday, while others are charging slightly less $2.259. Infometrics economist Brad Olsen said the main reason was President Trump’s recent dealings in Iran. “The main driver is the overseas price. Brad Olsen West Texas Intermediate crude oil has shot up over the last couple of days and that’s largely because Trump and Iran has shaken up the playing field,” Mr Olsen said. President Trump announced last week that the US was walking away from the Iran nuclear deal organised between Russia, the United Kingdom, France, China and the US in 2015. Yesterday, The Star tweeted President Trump for reaction. He did not respond. Fuel prices in the city hit the record high on Friday. Yesterday there were reports of stations on Waiheke Island charging $2.51 a litre and $2.45 in Wanaka. In Auckland, prices were between $2.07 and $2.17 a litre. Mr Olsen said Christchurch was hit harder than Auckland due to the “Gull-effect,” caused by the introduction of the low priced Gull petrol stations in 2013. He said there was also a lack of competition between stations in Christchurch. And relief is not in sight. “We can’t really pick when they’ll go back down or if they’ll go back down . . . it will be interesting to see how prices change and regional discrepancies,” Mr Olsen said. There have been calls for the Government to address the issue. Minister of Energy and Resources Megan Woods said it is “very concerning” that Cantabrians are paying so much for petrol and it was clear the market is “not functioning as it should be.” “Obviously international events and the declining New Zealand dollar will have some role to play, but our focus is that people are paying a fair price,” she said. Dr Woods said the law is being changed to give the Commerce PRICE HIKE: Many stations around the city, including NPD on Moorhouse Ave are charging $2.299 per litre of 91 octane petrol. A record high in Christchurch. PHOTO: MARTIN HUNTER Commission the power to conduct market studies and compel the release of evidence to work out why petrol south of Wellington was much higher. Mr Olsen said it would have the biggest impact on lower income families, who would have to change their budgets drastically or change the way they travel. Red Bus chief executive Paul McNoe said it had not noticed an immediate increase in patronage. “But it is possible. The further it goes up and the longer it stays that high. It depends on people’s preference and their tolerance for prices. We’re always happy to welcome new customers,” he said. New Zealand Taxi Federation Canterbury president Stan Gane said the industry was “massively” impacted, but was not considering putting prices up. “We’ve changed most of the fleet in Christchurch to hybrid and are keeping prices as low as we possibly can, but every cent that fuel goes up is less wages and less groceries for staff,” he said. Mr Olsen said consumers could also expect to feel the brunt of petrol prices as freight companies would raise prices for retailers, who would likely pass it on to customers. “Largely we’ll see it in food prices. It will be interesting to see how much retailers put it up because consumers are going to get pretty annoyed with having to pay more for fuel as well as goods.”
The Star Latest Christchurch news at www.star.kiwi Thursday May 24 2018 5 HORNCASTLE ARENA June 29 - July 1 10AM - 5PM TICKETS ONLINE: starhomeshow.kiwi David Gaskell Eruera Reuben Hana Kakoi Fay Ward Samantha Lawrence • By Julia Evans WEEKENDS AWAY, nights out, vegetables and meat – the pinch at the pump is causing Christchurch residents to tighten their budgets and make sacrifices. On Tuesday The Star visited Linwood to see how people were affected. David Gaskell said he had noticed his weekly petrol bill increase to $40. “It hasn’t been too bad yet, but we’re starting to tighten up on the little things.” Mr Gaskell said his family was spending more time at home. “We definitely don’t go out as much as we used to,” he said. When asked if he had noticed the hike in the price of petrol, Eruera Reuben simply pointed at the fuel light on the dashboard of his car. “Look, it’s on empty. It’s on E a lot now.” Mr Reuben said he puts $20 in “here and there” so he was not getting as far as he used to. “I’ve just been trying to get the vege garden going so we can stop buying veges . . . I love steak, but we can’t get that any more.” Community worker Hana Kakoi said fuel price is one of the “hottest topics” at the Bromley Community Centre. But Ms Kakoi said it’s not a “big deal” for her family yet. “It just means we save less.” Fay Ward shook her head and said her family was having to “skimp” on groceries. “ “The price of petrol is terrible. Kiefer Bailey ‘It’s on empty. It’s on E a lot now’ We don’t get out the same . . . because we just can’t afford it,” she said. Samantha Lawrence said it was a “balancing act.” “It’s gone from $40 a week, to $60 a week and we live on a weekly budget so that means $20 less.” “We can’t cut down on internet or power so it’s usually groceries,” she said. Kiefer Bailey said the price hike was “unfair.” “I’ve noticed the increase in Christchurch only. How does that work?” Mr Bailey he said he could cope with the prices, but that wasn’t the same for everyone. “I’ve heard this is the highest it has ever been so if it keeps going up, then yeah, that’s going to be a worry.” How to save money on fuel •Make sure your tyres are inflated correctly. The Automobile Association found incorrect tyre pressure uses nearly eight per cent more fuel. •Avoid rush hour. Turning your engine off if you’re stuck in traffic for longer than 30 seconds is better than keeping the car running according to the AA, and the Motor Trade Association recommends planning ahead to run errands during off-peak times. •Don’t speed. According to the MTA, fuel consumption increases by about six per cent for every 10km/h faster you travel over 90km/h. •Keep your load light. The more weight in your car means more petrol is needed to propel it. •Use your air conditioner, but only when necessary. Opening your windows to cool the car down is actually less fuel efficient than using the A/C because it creates drag. However, blasting the A/C or leaving the back window demister on after they’ve done their job is an unnecessary drain on fuel. •Take care of your car. Regular service could reduce your fuel consumption by up to 20 per cent ACT NOW If you are insured with State, NZI or any IAG policy, you have until 30 June 2018 before they can use the Limitation Act to decline your earthquake claim. For help, call us now! Ph: 03 377 8855 | 130 Ferry Road, Christchurch E: reception@earthquakeservices.co.nz | W: www.earthquakeservices.co.nz
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The Star: May 24, 2018

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