‘The country is stuffed’: Petrol pain is back and not just at the pumps

Jason Crewe is seven cars back from the petrol pumps and seething.

Ahead, a man whose already topped up his van has now turned his attention to a collection of containers, filling them to the brim and pausing between each one to shrug a “sorry” at the waiting cars.

“This is going to save me about $15 at most,” says Crewe from his Holden, adding he’s not angry at his fellow motorists but at what they’re being forced to do.

“The country is stuffed… When you’ve got people queueing to save a few bucks on gas, it proves it.”

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On Friday, other motorists awaiting their turn at a Lower Hutt petrol station echoed Crewe’s sentiments, exasperated at the looming end of the 15-month-long fuel tax cut.

Introduced as a way to help with the rising cost of living, the 25c per litre discount finished from Saturday, as did more than a year of universal half-price public transport fares.

And, as budgeting advisors warned the double blow will only worsen the lives of already struggling New Zealanders, Kiwis rushed to pumps around the country amid warnings not to stockpile.

“It’s probably not best practice,” said the man filling up his containers on the Lower Hutt forecourt, “but I don’t actually care any more.”

While he did care enough not to want his name published, the tradesman said his stockpile will be used to fill the work van and family car during the next couple of weeks. Like Crewe, he said it wasn’t a huge saving though every little bit counts.

“I don’t see the thinking behind ending the subsidy now – it’s not like anything has got better, has it?”

Further back in the line, another motorist wasn’t planning to store fuel out of fear it “would explode” but applauded people who were.

“People can’t afford to live any more. We’re living week-to-week like everybody else, and cutting back where we can, but it’s not like I can say, ‘I can’t come to work because I can’t afford to get there’. Petrol is a necessity.”

Lara Dolan, chief executive of the Māngere Budgeting Services Trust, says that’s exactly the problem: transport is essential and Kiwis don’t have any fat left to trim from their expenses.

“What we can see is people currently spend about $50 -$100 per week on petrol… Bear in mind, those who access our service are already struggling.”

Dolan says that while the return of the fuel tax might seem paltry when compared to other costs, its effect shouldn’t be downplayed. ”It might only add up to $15, but that’s $15 people just don’t have.”

And, although half-price public transport will still apply for under-25s while under 13s travel for free, she says it’s not always practical or even possible for people to catch a bus or train.

“They need to get to work, to buy groceries, pick up children. Life is busy and, to be honest, public transport in New Zealand is not the best.”

As for budgeting tips, Dolan recommends Kiwis take a look at any subscriptions they can do without and stick to a strict shopping list in the supermarket.

“Buy exactly what you need; even if it’s on special, don’t buy it if it’s not on your list.”

Charlotte O’Rourke of Henderson Budget Service also says things are about to get harder now the tax cut is over. Her service is already booked out until the end of July, with would-be clients being referred on.

Ultimately, there are no new tricks she can offer for people desperate to cut their spending – just the same things we’ve all heard before.

“Use the petrol apps; review your insurance and look for better offers on power; some credit cards can be fixed for a year. Also look for cheaper food options – ridiculous, I know, because there aren’t any.”

Even so, what really can help is approaching a financial advisor to look at expenses and assist with making a budget. Sometimes it’s hard to see the wood for the trees, and a fresh set of eyes can spot some potential savings.

“We don’t judge – we’re struggling too – but we can offer solutions. Coming in and telling a stranger all the problems is scary, though it’s that first step that’s the hardest.”

But just as New Zealanders lament the cost at the petrol station, a transport expert says the return of the tax will also hit them almost everywhere else.

Transporting New Zealand chief executive Dom Kalasih says while freight companies were more affected by increased road user charges in January, the loss of the fuel discount will still sting.

“Very little of what people need to live doesn’t involve road transport, so any impact on road transport is going to impact the social cost.”

Just this week it was revealed that transport companies’ margins or profits are back to 2008 levels, he says, and those companies can no longer absorb any extra costs.

“We accept it couldn’t go on forever, but the fact the discount was extended three times shows it had a significant impact on the country.

“But now it’s gone and our message to our operators is, ‘you have to pass these costs on’. Our message to our consumers is, ‘sorry, it’s not our fault’.”