Pressure is mounting on farmers by the litre due to an “inelastic” reliance on fuel, warns the Manawatū-Rangitikei president of Federated Farmers.
By Rebecca Hogan, Local Democracy Reporter
Farmers were “almost 100% reliant on diesel”, said Ian Strahan as he reiterated calls for the prioritisation of primary industries and the rural sector during the ongoing fuel crisis.
He said farmers who had no choice but to purchase diesel for their generators and tractors were sending money into a “black hole”.
Getting fuel to primary industries needed to be prioritised if the country moved to phase two of the National Fuel Plan, as current strains on the fuel sector were largely “caused by panic buying and the extra amounts being used".
“There’s been a bit of FOMO [fear of missing out] at stations, and I think supply companies feel pressured to keep service stations full of petrol and diesel, meaning some rural deliveries haven’t taken place.”
Kaaeni Whitu travelled from his farm in Bulls to the Feilding Sale Yards on Friday. He said the fuel crisis had caused him financial stress, but he had no choice but to keep going.
“It’s just the way things are.”
Whitu wasn’t concerned about demand for his stock decreasing, but was worried about the implications the fuel crisis may have on the cost of farm essentials such as hay, and on his ability to travel to see whanaū across the motū.
Manawatū district mayor Michael Ford said he was always impressed with farmers' resilience during challenging times, but he acknowledged people’s financial confidence had been knocked.
Ford said substantial increases to petrol and diesel prices had severely impacted the district’s community and businesses. If fuel rationing were enforced, he agreed crucial industries such as farming and agricultural business needed to be prioritised.
Carterton resident Ian Macintosh manned a stall at the Feilding Farmers’ Market and said the drive over was just part of his cost of living.
“If I don’t come then I don’t make any money.”
The greatest concern for the specialty vinegar maker was if the instability in the Middle East continued, he would likely have to alter his most popular range of vinegar as the dates crucial to his recipe were sourced from Iran.
Rangitīkei MP Suze Redmayne said she had received positive feedback from those eligible to receive fuel support from the Government, but she was concerned about essential costs rising for farmers.
They were now paying more on contractor fees for harvesters and planters who were charging extra to absorb the extra spent on petrol.
Wednesday’s announcement of a ceasefire to allow vessels to pass freely through the Strait of Hormuz prompted global oil prices to drop and for experts to say fuel relief may be here by the end of the week.
Despite the hopeful message, the cost of refining oil had risen by 600%. Z issued a national notice for commercial customers earlier this week saying diesel would lift 55c per litre.
Nationally there had been an uptake in fuel theft from farms and rural businesses.
Strahan encouraged people to store fuel somewhere with good lighting and security cameras, positioned where it was difficult for it to be siphoned and, where possible, out of sight.
Farmers should not “take things into their own hands” if they caught perpetrators stealing fuel, but Strahan also warned that thieves who stole from stressed farmers did so “at your own risk”.
LDR is local body journalism co-funded by RNZ and NZ On Air
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