Tight margins, cashflow challenges, stockout challenges
Thanks to those who have already taken the time to complete our fuel price and supply survey. We have received 35 responses so far, with helpful feedback from operators across the country.
The early results confirm what we’re hearing from members during member calls and visits, our fuel update event, and national sector workshop.
On average, respondents rated the impact of fuel price increases and supply uncertainty at 4.1 out of 5, where 1 represents no impact and 5 represents a critically negative impact on business viability. Nearly three quarters of respondents rated the impact at 4 or 5.
Key themes include margins under pressure, severe cashflow strain, concern about diesel stockouts, and slowing demand.
Many operators say they are only able to partially recover fuel cost increases, or not at all. The remainder is being absorbed, reducing margins that were already tight. As one respondent put it “costs aren’t easily passed on in an environment where everyone is already walking a tight rope.”
Several responses highlight the lag between rising fuel prices and updated charges being applied to invoices. One respondent noted they are “always a month behind to recuperate fuel costs,” which is creating real pressure on cashflow.
Diesel availability has been flagged as a concern, despite sufficient national supply. More than a third of respondents report turning up to empty truck stops three or more times. Operators describe “having to call at multiple truck stops to find fuel” and dealing with “regular network outages in both islands.”
Responses suggest that many customers have been understanding, but there is resistance to ongoing increases. One respondent said customers are “sympathetic but don’t want to pay for the problem,” and others report project work being delayed or put on hold.
It’s put approx. $250k additional cost to our fleet. Also down time for staff as pumps run out of diesel”
There is also a strong message coming through about the need for practical support, including productivity relief through increased payloads, and a number of respondents suggesting temporary relief from road user charges. Respondents also requested greater clarity around fuel supply.
We are passing this feedback on directly in our discussions with officials and Ministers, who we are meeting with several times a week.
If you have not yet completed the survey, we encourage you to do so. The more data we have, the stronger the case we can make on your behalf. We are also collating fuel feedback we’re getting outside of the survey, to build a complete picture.
We will continue to provide updates as more responses come in.
