Source: Radio New Zealand
At an average price of $3.42 a litre for 91, it would cost an average household buying 43 litres of fuel a week nearly $150. RNZ / Unsplash
It now costs a typical household $40 more to fill up their car than it did last week – and people in some of the country’s more remote and lower-income areas may be feeling it most.
Ipsos’s latest mobility report, which covers 31 countries, showed New Zealanders were particularly reliant on their cars. Across the world an average 43 percent said it would be impossible to live without a car, but that rose to 51 percent in New Zealand.
Another 36 percent said they could live without their vehicle but preferred to have it.
Across the 31 countries, 39 percent of respondents said their primary mode of transport was car – but that rose to 66 percent in New Zealand, ahead of 64 percent in the United States.
That may be an issue when oil prices are rising fast.
Data from the Ministry of Transport shows car dependence may not be evenly spread across the country.
It indicates that while Auckland, Wellington and some of the east coast of the North Island have low levels of light vehicle usage – between 6489 and 8611 vehicle kilometres travelled per person per year, Northland, Waikato, Southland and the west coast of the South Island all had high usage, above 10,423.
Simplicity chief economist Shamubeel Eaqub said many people in regional areas were not driving much but those who were, would drive a lot.
He said the price shock of rising fuel prices would hit those who had to drive more and did not have transport alternatives.
“Essentially the provincial parts of New Zealand are really quite dependent and they’re quite sensitive to those changes in prices… I was talking to somebody in Taranaki, they drive almost an hour to get to work every day. There’s no other way to get there.”
He said, at an average price of $3.42 a litre for 91, it would cost an average household buying 43 litres of fuel a week nearly $150.
“That’s up $40 from last week… when I look at where refined prices are in Singapore and Korea, we’re probably looking at [getting to] $3.80.”
He said that would mean $165 a week for households on fuel before they bought any other essentials.
“That’s the bit that really worries me, this is not the first thing that has happened. Since 2019, the cost of necessities has gone up by about $300 a week.”
He said that included food, electricity and insurance.
“Whatever income gain you’ve had, a huge chunk of that has been taken out.”
Jake Lilley, policy director for Fincap, the financial mentor network, said it would not be surprising if car use was higher in places where incomes were lower, because the strain of vehicle costs was something that often came up in data and conversations with financial mentors.
“We have often commented that transport is essential for people’s health, well-being and social participation. In many places a whānau will need access to a vehicle to meet these essential needs and this is often one of the biggest strains on balancing a household budget when seeing a financial mentor for support. Whānau might also find it hard where public transport is available to juggle school pickups, work and income appointments, medical appointments, managing any disability someone in the whānau may have and getting to work on time without access to a vehicle.”
Ipsos also found public transport was less well regarded here – 57 percent said it was accessible compared to 62 percent globally and 59 percent said it was safe compared to 62 percent on average across the world.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
