Bakery owner says fuel crisis final straw for her small business

Wednesday, 22 April 2026

The Post's Under The Pump is a new series investigating how the global fuel crunch is disrupting New Zealand businesses - but more importantly, how they’re planning to survive.

“My Loaves” is how Lynda McGregor (Ngāti Raukawa ki te Tonga, Ngāti Kahungunu, Ngāti Kuia, Te Atiawa, Te Whānau a Apanui) addresses her bakery’s customers.

McGregor has owned Little Bread Loaf since 2021; a hole-in-the-wall bakery just off Railway Ave in Lower Hutt, known for its cinnamon buns, sandwiches and pretzels.

She also operates a weekly stall at the Wellington’s Newtown fruit and vegetable market and has amassed loyal customer base. However, with the ongoing fuel crisis, McGregor isn’t sure her business will survive until Matariki in July.

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“To be honest, I’m too small … I don't think I'm going to make it.”

McGregor’s operating costs have risen substantially. Previously, she used to put $40 of diesel in her van every other week to travel to catering jobs and markets. Now, it costs her $100 every time she fills up her tank.

Since the end of February, Stats NZ has found petrol has risen nearly 19% and diesel by 43%.

“The cost hits me, hits my supplier, then it also hits my customers.”

Because of this, the small business owner has had to say no to her usual money-spinners. McGregor said she declined an opportunity work a stall at the Foxton Easter Fair because the revenue expectations wouldn’t offset the costs.

There was the increased fuel and ingredient costs - on top of having to spend more hours baking as her staff didn’t work public holidays.

McGregor noticed the fuel crisis had triggered a rise in freight costs: usually, suppliers waived freight charges if a large amount of money, but this was no longer the case.

This, in turn, had increased the cost of raw ingredients and the cost of waste removal, she said.

However, the fuel crisis is only the tip of the iceberg. The past two years had been hard, McGregor said, with revenue dropping across the board by 60%.

The ongoing construction around Lower Hutt, paywave surcharges and the general economic downturn had put pressure on her and other small businesses.

The other option was to pass on the cost to her customers by raising her prices - however, with mortgage interest rates going up and the gutting of the public service, everyone was already feeling the squeeze.

It was tough spot to be in, McGregor said.

“There's only a certain point that you can raise your prices to, because, again, you've got all these people that just don't have the money. And my customers are absolutely gorgeous.”

McGregor also works as a caterer, but says the work has almost dried up. She first opened her business in 2021, after working in hospitality for three decades as a chef.

A single mother-of-two, McGregor runs her business solo, without a business partner.

After speaking with her accountant, the business owner said she was not sure she was going to be able to survive until mid-year.

“If you don't have the foot traffic coming through, and if you don't have the orders coming through … it's just me.”