Rising Fuel Costs Prompt Call for Smarter Spending

Households are being urged to plan ahead as rising fuel and freight costs begin to bite.

While Prime Minister Christopher Luxon said New Zealand's fuel stock remains strong, a Whakatāne financial mentor is urging locals to think ahead. 

Fuel prices have surged since the Middle East conflict began, but driving habits have not changed, said Whakatane Financial Mentoring Service Manager Tui Edwards. 
"They are still travelling as usual and they still haven't got it into their minds to restrict travel."

"You need to budget now, be serious about it because it's going to be not a short term thing and the government has indicated with their announcement on the Working for Families help that could be a year," she said. 

From April 7, about 143 families will receive an extra $50 a week through a boost to the in-work tax credit.

Finance Minister Nicola Willis said the increase would be temporary, lasting for one year or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks.

While this will benefit some, Edwards is concerned many will be left out to dry. 

The elderly, training workers and the unemployed are struggling but will not receive support as they are not working, she said. 

For families who will be missing out on this relief, Edwards recommends cutting unnecessary trips, combining errands, and adopting more efficient driving habits, as well as carpooling and shopping around for cheaper fuel.

"Tap into the neighbours, tap into your family, who's going somewhere, 'Can we jump in?', or 'Can you pick up this for us?'."

These will make immediate impacts on a weekly fuel bill she said. 

She warned rising freight costs will likely push up supermarket prices, meaning the impact will be felt beyond the fuel pump.

"Everything gets carted around on a truck - the supermarket, everywhere you go - everything's going to go up ."

"It's just bigger than just at the fuel pump." 

She warned against using buy now, pay later services for essentials.
“It traps people — if you can’t afford it, don’t use it,” she said.

To get ahead of food price increases, she recommends growing produce at home where possible. 

"If you can start looking at self-sufficiency, that could be an idea - growing your own veggies in the winter."

"If you've got a space to have hens, or can go fishing - do anything to help your weekly cost go down."

With winter approaching, she warned rising fuel, power and living costs would put increasing pressure on households.

"We're going to have to tighten our belts," she said.