Soaring petrol prices sparks Taranaki electric car sale surge

Wednesday, 18 March 2026

Surging fuel prices are hitting Taranaki causing a spike in electric car sales as transport and farming leaders warn of flow on costs through the region’s economy.

Petrol in Taranaki has climbed above $3 a litre, up from around $2.50 two weeks ago, following US-Israel strikes on Iran and the closure of the Strait of Hormuz, a key global oil route, raising concerns about both affordability and supply.

The fuel price surge comes as figures show food prices had risen 4.5% in the 12 months to February, with beef mince experiencing its biggest annual jump in two decades.

Despite the rise in costs, electric car dealer BYD New Plymouth principal Tim Paul revealed the dealership had experienced a surge of interest since the news of the fuel price surge broke.

“Saturday was unusually busy. We got here on Monday morning and there were people waiting for us and today’s been completely stupid,” he said.

“It’s all on the back of the fuel prices, every single one of them.”

Paul said the dealership would normally sell around six vehicles a month, but by Tuesday lunchtime they had already reached that total and he predicted another six would be sold by the end of the week.

“That might not sound impressive, but for us it’s massive, we never do double figures in a month.”

He said rising fuel costs was the obvious push for many drivers who had been hesitant about electric vehicles to finally make the switch because the petrol prices were “irrefutable”.

However, Paul said the sudden surge in demand could soon lead to supply shortages, as stock was ordered before the war, and expected limits on the number of vehicles he could sell by the end of the month.

While Paul’s dealership was benefiting from the fuel prices, Bell Block-based freight haulers Symons Transport was feeling the pressure.

Managing director Dean Eggars said diesel costs had jumped to around 72% more than they were two weeks ago.

He said most transport contracts included fuel adjustment clauses, but those were designed for gradual prices rather than sudden spikes.

“In the end, we’re the ultimate loser, there’s no way we can win out of it,” he said.

Most customers understood, he said, but warned price rises would filter through supply chains.

“I think there will be a little more of a lift this week, but I don’t think we’ll see fuel back to pre-war rates, I don’t think we’ll see those again.

“There’s just nothing you can do about it. You concentrate on what you can control and get on with it.”

To offset some of the costs, Eggars said seasonal downtime meant around 10 fewer trucks were on the road than at peak times.

Taranaki farmers were also bracing for higher costs.

Federated Farmers Taranaki president Leedom Gibbs said suppliers were already warning that fuel surcharges and short-term prices would become more common.

She said farmers were already getting notified from supply companies that quotes were “very short-term” if they involve transport or tractor work, which would be passed onto the farmer.

“At the moment, we’re heading into a big time of year for fertiliser spreading and pasture work, so those transport costs will feed straight into it.”

Gibbs said farmers were used to volatility, but uncertainty about supply was a bigger concern that rising prices.

“The fact that we might not have any is more scary than the price going up.”

Like Eggars, Gibbs warned that, as with many disruptions since the pandemic, once costs rise they rarely return to previous levels, adding pressure across the entire economy.