Mayor's Message: Fuel crisis disappointing setback to recovery
The war in Iran is creating uncertainty for the Nelson economy just as signs of recovery were showing. We have little control over international events but we are responding as best we can.
Higher fuel prices are the major impact for us. Petrol is already over $3 a litre and is likely to get worse before it gets better. The average Nelson household uses about 15 litres of fuel a week meaning the weekly cost has increased from $35 to $45. Higher fuel costs flow through to the cost of food and most goods so the impact will be closer to $20 a week for households.
Our key export industries will also take a financial hit. Fishing, forestry and horticulture are major uses of fuel both in harvesting and shipping. Tourism, too, will be affected with Air New Zealand cancelling 120 Nelson flights, or about 5% of seats, over the next six weeks.
No-one knows how long the conflict will last, how long fuel prices will stay high and whether we will face significant shortages. The major response rests with central government. They have sensibly distanced NZ from any military involvement in the conflict, but also diplomatically avoided alienating the United States or defending the brutal regime in Iran.
Government has announced a four-level fuel alert response that enables the fuel shortage to be closely monitored and a co-ordinated response. They are also considering options for household relief that may be needed if the crisis continues for an extended period.
Nelson’s biggest use of fuel is in the transport sector. Everyone’s transport needs and circumstances are different in where we live, where we work, times of travel, our incomes, ages, fitness and other responsibilities. Council’s role is not to tell people to bus, bike, walk or drive but to provide transport choices. The current fuel crisis is a good time for people and businesses to review their transport options and try alternatives.
The Nelson and Tasman councils established the new eBus service in 2023, which has doubled public transport use in the region. It reduces our dependence on fossil fuels, congestion, emissions and pressures on parking. Our Joint Regional Transport Committee agreed last week to add earlier morning bus services on Routes 1 and 2 between Richmond and the city, to be implemented as soon as possible in response to the fuel crisis. We will need to keep an open mind on other initiatives as the crisis unfolds.
