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The cavalry could be on the way as transport operators and contractors feel the squeeze due to fuel price rises caused by the war in the Middle East.
A more flexible approach will ensure essential services stay on track, Transport Minister Chris Bishop expects.
“Rising fuel prices are putting pressure on Kiwi businesses, including public transport operators keeping our buses and ferries running, and contractors building and maintaining our roads and infrastructure,” he says.
“Public transport operators play a vital role in keeping our cities moving. It helps to ensure services remain reliable for passengers – especially important when Kiwis are increasingly choosing to take public transport in response to rising fuel prices.”
Most NZTA contracts allow for fuel price adjustments, but when prices move quickly it creates cashflow pressure, Bishop explains.
“We’re fixing that. NZTA is moving to monthly interim fuel price adjustments across its public transport, construction and maintenance contracts so operators and contractors are not left waiting months to recover rising costs.”
Bishop says this change will help keep public transport services running reliably and ensure critical infrastructure projects stay on track.
“This is a practical, common-sense change. It doesn’t increase the overall cost of contracts, but it does smooth cashflow and reduce risk, particularly for smaller operators who don’t have the balance sheets to absorb rapid cost increases.”
The government will continue to monitor global fuel markets closely with more support possible, provided it is temporary, targeted and timely, Bishop adds.
“This change meets that test. It uses existing contract settings, it will apply for as long as volatility persists and it can be scaled back when conditions stabilise,” he says.
“New Zealand’s fuel supply remains stable, and there is currently no need for restrictions. But we are planning carefully, acting early where needed, and making sure we are well positioned to respond to any disruption.
“Our focus is straightforward – keep fuel flowing, keep people moving, and keep the economy going.”
