Source: Radio New Zealand
Petrol has tipped over the $3 a litre mark in some areas. RNZ / Dan Cook
The CEO of one of New Zealand’s largest independent fuel suppliers says there is no need for people to panic-buy fuel as motorists worry about rising prices.
Petrol stations across the country are seeing a surge of drivers filling up as petrol prices rise.
Petrol (91) has tipped over the $3 a litre mark in some areas because of the conflict in the Middle East.
US President Donald Trump is calling for countries to send ships to secure the Strait of Hormuz, which is effectively closed as Iran launches attacks to halt maritime traffic.
The area is critical because around 20 percent of the world’s oil consumption or 20 million barrels a day, usually passes through it.
It’s resulted in several petrol stations running dry over the weekend.
Waitomo CEO Simon Parham said demand at the company’s petrol station has increased by about 15 percent.
“We’ve had the odd run out from here and there, but it’s really been for a maximum of 30 minutes,” he told Morning Report.
“What we are seeing is that increase in demand, coupled with a very stressed driver system, anything from a delay at the terminal to a truck breaking down, it’s just caused that slight delay in he system, so you have a slight run out.
“There’s nothing to worry about.”
He expects to see the demand soften.
“In saying that, $20 doesn’t buy you what $20 did two weeks ago at the pump.”
Parham said New Zealand has 50 days’ worth of fuel and is optimistic this can be managed.
“We’re still in good shape… There’s no need to panic. Yes, we are suffering from high prices, which is tough on everyone, but there is no need to panic at the moment.”
He said if the cargo orders can’t be placed, that’s when New Zealand may need to look at managing stock.
“If we are staying around that 50-day mark, that’s a rolling 50 days, then we’re fine. If we start to see that drop back, then that’s when we have to manage stock,” Parham said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
