Iran War: Bluebridge hikes Cook Strait ferry fares due to fuel crisis, Interislander may need to follow suit

Saturday, 11 April 2026

Bluebridge has had to introduce a “modest increase to passenger fares” as high marine fuel prices bite.

“We’re doing everything we can to absorb as much as possible of the increases but as a commercial business, we have had to introduce a modest increase to passenger fares,” Bluebridge spokesperson Will Dady told The Post

Interislander ferries use marine gas oil which is a lower sulphur type of diesel, while Bluebridge fuel via a mixture of diesel and low sulphur fuel, the costs of which had risen sharply in the past few weeks.

“We are very aware of the important role we play in ensuring freight and passengers are able to move efficiently between the Islands and maintaining a reliable fuel supply is integral to this,' Dady said.

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Adele Wilson, spokesperson for the other Cook Strait ferry service, KiwiRail, told The Post it may need to change tack for its pricing if the fuel costs stay high.

“If fuel prices remain elevated for a sustained period, those costs may need to be recovered over time to ensure the service remains financially sustainable.

“Any changes are approached carefully, with a focus on fairness for customers.”

Wilson said for freight customers Interislander had a “fuel adjustment factor mechanism” to manage the impact of fuel price fluctuations.

“We will also continue to look at ways to offset fuel price increases where possible.”

The latest Commerce Commission price report on fuel was released on Thursday and said the refined cost of diesel was $1.13 a litre higher than immediately before hostilities with Iran began on February 28, but that its retail price was $1.92 higher.

At the time of reporting fuel monitoring company Gaspy had the average price of diesel at $3.88 a litre.

What are industries expecting?

Trucking lobby group Transporting New Zealand's chief executive Dom Kalasih told The Post it would be no surprise if eventually the Cook Strait ferry services passed on fuel costs to consumers, including truck operators.

'Then ultimately it will just be another cost that transport operators have to pass on.'

Kalasih said he knew in recent weeks Interislander had been absorbing the costs.

'That was at least a fortnight ago and whether that's changed I'm sorry I can't tell you.'

Tourism Industry Association chief executive Rebecca Ingram told The Post many tourism operators had seen a sharp increase in costs but were actively managing or absorbing costs for the moment.

“We’re not seeing businesses moving quickly to raise their prices; a recent survey to our members showed that only 10% have had to raise their pricing as a result of these cost increases.”

She said some businesses were more reliant on fuel than others.

“If you’re a scenic flight operator, a jet boat experience or a remote lodge that uses a diesel generator, you’re more likely to be impacted by the Middle East conflict and the rising fuel prices.”