Diesel surge hits farmers and truckers hard

Tuesday, 31 March 2026

Fuel prices at Z Carlton Corner in Christchurch on Monday.

South Island arable farmers are under pressure as diesel prices soar, with the prime minister confirming the Government may buy more of the industry-critical fuel.

Diesel is on average now more expensive than 91 octane petrol at the pump, according to price comparison site Gaspy.

There appears no relief for fuel users on the horizon, with oil prices rising further when global markets reopened on Monday amid speculation of the United States launching a ground war in Iran.

Minister of Finance Nicola Willis and Prime Minister Christopher Luxon at a recent press conference to discuss the fuel crisis in New Zealand.

Brent crude was trading at just over US$108 a barrel shortly before 1pm, up US$3 on its pre-weekend close.

Gaspy first reported diesel prices had overtaken petrol on Sunday afternoon.

At lunchtime on Monday it was quoting the average price of diesel at a fraction of a cent under $3.44 a litre, and 91 a fraction of a cent under $3.43.

Road User Charges add the equivalent of about 80 cents a litre to the price of diesel, meaning it is now far more expensive on a per-kilometre-travelled basis.

A tractor on the road near Drummond, Southland.

However, there has been an increase in total petrol and diesel stocks, while jet fuel levels remain normal, according to the latest fuel stocks update.

Data released on Monday afternoon by the Ministry of Business, Innovation, and Employment showed that as of 11.59pm on Wednesday, there were 59.3 days' cover of petrol, 54.5 days' cover of diesel, and 50.4 days' cover of jet fuel.

Now is the time to get crops back in the ground, a Federated Farmers spokesperson said.

Christopher Luxon spoke to media at the post-Cabinet press conference on Monday afternoon alongside Finance Minister Nicola Willis and Associate Energy Minister Shane Jones.

“It's important that New Zealand secures fuel through our normal channels. However, at Cabinet today, we also discussed the option of government pursuing further commercial opportunities to enhance and add to additional storage and supply of critical fuels like diesel,” Luxon said.

Willis said Cabinet had agreed to explore additional options to guard against the risk of disrupted fuel supply and to secure additional fuel security.

David Birkett, national arable chairperson of Federated Farmers and a Leeston farmer, says the diesel price spike is hitting farms at a critical time.

Getting crops back in the ground

“With harvest wrapping up and 70% of our farms about to be replanted, if we don’t get crops back in the ground now, that creates a shortage later in the year,” Leeston farmer David Birkett, Federated Farmers national arable chairperson, said.

The industry grows a wide range of crops, including wheat, barley, maize, grasses, clovers, and fresh vegetables. Nearly all farm machinery runs on diesel, and during harvest, some farms burn between 1000 and 1500 litres a day.

One four-truck operator has seen their fuel bill increase by $1000 a day, and customers need to be prepared to pay promptly, National Road Carriers Association chief executive Justin Tighe-Umbers says.

“Fuel is one of the biggest costs on an arable farm. If prices stay at this level for six months, our fuel bills could effectively double,” he said, adding that farmers cannot easily pass these costs on.

Birkett said if diesel restrictions were introduced, health services must come first, particularly in rural areas, followed by farming to keep food supply lines open.

“A lot of what we produce ends up on supermarket shelves, and we need to make sure food will be there when people need it.”

A man fills up his car and a jerry can at Z Belfast in Christchurch.

The arable industry is small but vital, with roughly 2500 farmers nationwide. Canterbury dominates production, accounting for about 70% of crops, much of it for human consumption and animal feed. Combined with road user charges, the diesel spike is adding a heavy burden to farm profitability.

“Fuel is a major cost for our machinery, and this spike will have a significant impact on farm earnings,” Birkett said.

The trucking industry is also feeling the pinch. National Road Carriers Association chief executive Justin Tighe-Umbers said diesel costs have roughly doubled since the conflict began, adding about 20% to operating costs for an average truck.

“A four-truck operator has seen their fuel bill increase by $1000 a day. Customers need to be prepared to pay for this, and promptly, rather than taking the 30, 60 or even 90 days to pay which is not uncommon in the industry,” Tighe-Umbers said.

“Diesel powers the economy. It is the fuel that fills shop shelves, delivers New Zealand’s exports and fuels the rural economy.”

While New Zealand still has a healthy diesel supply — about 54.5 days in stock or on the water — the industry is closely following government plans.

“National Road Carriers and other industry representatives are providing advice to Government officials on practical steps to implement the national fuel plan should restrictions be required,” he said.

To support members, the association is offering fuel discounts, tools to pass on short-term price fluctuations, and guidance on managing operational hurdles.

“The hub reminds members that [National Road Carriers] partners Mobil and Z Energy offer members substantial discounts of up to 29 cents per litre fuel discounts diesel and up to 12 cents per litre on petrol,” Tighe-Umbers said.

“We also have a fuel adjustment factor calculator that enables members to pass on short-term fuel fluctuations to customers fairly. Our cost model tool, developed by our economic consultancy partner Infometrics, is a customisable tool that helps trucking customers understand how underlying cost changes impact their specific business model.”