Price of petrol on Stewart Island passes $2.20

BARRY HARCOURT/ID 124714

BETWEEN A ROCK AND A ... : Jack Frew, of Stewart Island's Island Transport, wondering where the price hike will end up. His pump prices are at $2.21 a litre.

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As Kiwi motorists brace themselves for petrol prices to top $2, on Stewart Island yesterday the price at the Island's single pump, which serves about 350 vehicles, sat at $2.21.

The owner of Halfmoon Bay business Island Transport, Jack Frew, said prices on the island were higher than those on the mainland because of the cost of freight, but the price was now at an all-time high and showed no sign of slowing.

"It (the fuel price) goes up every week," he said. "I've got to keep putting it up to cover my overheads, otherwise it's not viable." Islanders had little option but grin and bear the price, he said.

"They can't go anywhere else — they just live with it." Diesel, which is served to Stewart Islanders direct from a tank on the back of a truck, was yesterday priced at $1.78, Mr Frew said.

However, if that truck left his yard to make a delivery the price increased, he said.

Resident Don Dickens said islanders were simply forced to wear petrol prices.

"It doesn't really bother us over here because we don't go far — I'm not worried about petrol, it's the diesel." For those reliant on diesel for heating or to run generators, price hikes were bound to be hurting, he said.

Water taxi operator Ken Geeson, who trades as Seaview Enterprises, said his business went through about 14,000L a year and it was only a matter of time before the cost was passed on to his customers. "I haven't yet but it's going to come." Seabuzz water taxi owner Bruce Ford said fares were usually set for the season in October and were likely to be put up to meet fuel costs ahead of the peak season.

Works contractor Neil "Arkwright" Conner said his business was dependent on diesel-powered machinery and fuel prices were beginning to impact his bottom line.

"Even the price of explosives we use for blasting have gone up because they're all made from oil."

- © Fairfax NZ News