Rising Fuel Costs Drive Public Transport Boom in NZ | RNZ News
Auckland commuters faced a stark choice this week as the cost of driving 15 kilometers surpassed the price of a public transport fare, even before factoring in parking, according to Auckland Transport. The shift comes as fuel prices continue to climb across New Zealand, driven by the ongoing conflict in the Middle East and concerns over supply disruptions.
The surge in fuel costs – 91 octane petrol rose 55 cents a litre last week alone since the start of the Iran war, with diesel increasing by 90 cents – is prompting a significant increase in public transport usage in major cities. Tuesday marked the busiest day for Auckland public transport since 2019, with passenger numbers seven percent higher than the previous Tuesday and 7,000 more trips recorded, according to Councillor Richard Hills.
“It’s great to see more people choosing public transport and trying it out,” Hills said.
The trend is mirrored in Wellington, where the Greater Wellington Regional Council anticipates recording its highest-ever daily public transport ridership in the coming weeks. While Wellington hasn’t yet surpassed its pre-pandemic peak, officials are confident they will, citing the combined impact of rising fuel prices and major traffic disruptions caused by the RiverLink construction project. Prior to this year, the region had experienced a six percent year-on-year decrease in public transport use, a trend that has now reversed, according to transport committee chairperson Ros Connolly.
“We’ve definitely seen the impact of higher fuel prices on people’s transport decisions,” Connolly stated.
The escalating crisis stems from the US-Israel war on Iran, which has prompted Iran to close the Strait of Hormuz, a critical waterway for Middle Eastern energy exports. Overnight strikes have as well targeted Iran’s portion of the world’s largest gas field, and Iranian officials have vowed retaliation, listing energy targets in Saudi Arabia, the UAE, and Qatar. The Automobile Association has warned that further price hikes are likely. Petrol prices have already crept past $3 a litre in Wellington, Auckland, and Christchurch, with Z on Vivian Street in Wellington charging $3.159 for 91 octane on Sunday.
Prime Minister Christopher Luxon and Finance Minister Nicola Willis have addressed the growing fuel crisis, warning that New Zealand is preparing for a potentially “prolonged” conflict in Iran. “Hope is not a plan,” Luxon said, acknowledging the global rise in oil prices. New Zealand currently has several weeks’ supply of fuel in storage or en route, the government has stated, but the long-term outlook remains uncertain.
The immediate impact is being felt at the pump, with reports of fuel stations running dry as motorists rush to fill up. Pak’nSave Masterton’s self-serve station ran out of both 91 octane and diesel before lunchtime on Thursday, March 20th, and price comparison site Gaspy reported advertising 91 octane at $4 a litre, though the store later confirmed it was temporarily out of stock.
As fuel supplies tighten and prices continue to climb, the government remains silent on potential interventions beyond preparedness measures, leaving commuters and businesses bracing for further disruption.