National Road Carriers

Justin’s Transport Minute – 17/04/26

Justin Tighe-Umbers — Thu, 16 Apr 2026 03:47:12 +0000

Fuel market update and building a picture of your fuel cost recovery

Fuel stocks update

On Wednesday MBIE reported diesel stocks were confirmed as 45.4 days cover, down from the 49.1 cover reported earlier in the week. MBIE noted the departure of “one small ship” has been delayed. Fuel companies confirmed the supply chains continue to operate, but noted that these kinds of delays are likely to become more common.

Fuel Response Plan Phases

Some media coverage has called for a move to Phase 2 of the Fuel Response Plan. Phase 2 is described as “the market continues to operate effectively and fuel is available nationwide, but there are signs of significant supply disruptions”.

The Fuel Response Plan also sets out the government criteria that would lead to a Ministerial assessment meeting to determine if a move between Phases was required. Rather than a single trigger-based approach, all of the criteria will be taken into account in the assessment. I recommend transport operators familiarise themselves with the plan.

It is important to note that Phase 2 does not contemplate prioritising fuel distribution, it is about stepping up fuel conservation efforts and further shoring up of supplies. National Road Carriers has asked for notification to industry of any Phase changes to be provided with as much lead time as practicable.

Supporting transport operators when the cost of diesel has doubled

National Road Carriers has a wide diaspora of membership. We have approximately 1500 members, who work across all of the transport sectors, operating 1 truck or hundreds, serving customers of all types and sizes.

Calling for a one size fits all response from government is rarely the right thing to do, especially when it comes to financial support.

The government has been clear: they are not going to reduce Road User Charges (RUC) or providing fiscal support – the coffers are empty. Discounting RUC is not the right thing to do, it just robs our roads of maintenance and repair, and we are already behind.

Riding out the doubling of diesel prices is going to come down to freight customers doing the right thing and paying transport operators for the increases.

Transport operators also need to play fair and be transparent about how they are passing on fuel costs with their customers, and the fuel adjustment factor (FAF) is one tool available that helps do that.

Help us understand where fuel cost recovery is working and where it is not

In our conversations with government officials, they often ask what are the impacts of the doubling of diesel to transport operators.

At NRC we want to make sure that across our broad membership base we are passing on an accurate view of what our members are experiencing so please take 5 minutes to email us your answers to the following questions below

The better picture we have, the more we can work with government on your behalf to help.

1. Have you been able to pass on diesel cost increases to your customers?

2. If not, what are the reasons are that fuel costs can’t be passed on?

3. Do you feel your sector is experiencing more difficulties than others that we should know about?

Before you consider not paying RUC, understand the full impact

James Smith — Thu, 16 Apr 2026 00:50:31 +0000

James Smith, GM Policy and Advocacy, National Road Carriers.

Recently there has been posts on social media and comments in the media calling for people to stop paying RUC.

NRC does not support this and for very good reasons members should refrain from taking this step as a way to lower cost.

Road User Charges or RUC is a charge paid by all vehicles that exceed 3500kg in mass or that use a fuel that is not taxed at source.

Revenue collected from fuel excise duty (FED), road user charges (RUC), vehicle and driver registration and licensing, state highway property disposal and leasing and road tolling is credited to the National Land Transport Fund (NLTF). The NLTF is used to fund National Land Transport Programme which is set every three years. Current NLTP was set in 2024 costing $32.9 billion from 2024-2027. In addition to the dedicated revenue streams there are several Crown grants and loans needed to get to the $32.9 billion.

There is no link between RUC and the price of diesel. Any reduction in RUC would result in a reduction in the NLTP or an increase to the already high Crown loan that NZTA is paying off for the last RUC discount.

RUC discounts do nothing to support the many businesses that use diesel for non on road activity.

Members should contact one of the team if they need assistance with what can be done to minimise or mitigate the cost increases on their business. There are no generic answers and we urge all members to ensure the steps they take are evidence based and specific to their business.

Failure to pay RUC is treated seriously by the Crown and are considered to be debts due to the Crown with the RUC collector (NZTA) authorised to recover these amounts through the courts.

As a business the consequences in participating in any campaign to not pay RUC could be very dire indeed.

Fines for Specific RUC Offences

Failure to comply with RUC requirements can result in significant fines upon conviction:

Failure to Produce Licence: Failing to produce a RUC licence immediately on demand by an enforcement officer carries a fine of up to $15,000 for a body corporate.
Providing Incorrect Information: Providing information known to be incorrect in an application for a RUC licence can lead to a fine of up to $75,000 (body corporate).
Record-Keeping Failures: Transport service licence holders who fail to make or retain required RUC records can be fined up to $100,000 (body corporate). Knowingly producing false RUC records carries a fine of up to 75,000 (body corporate).
Distance Recorder Violations: Operating a vehicle with a tampered or inaccurate distance recorder carries a maximum fine of $75,000 (body corporate).

Infringement Fees

Regulations can prescribe infringement fees for RUC offences:

For an offence against Section 10(2) (operating a heavy RUC vehicle where the distance recorder exceeds the licence maximum by more than 500 km), the fee may not exceed $3,000.
For other RUC infringement offences, the fee may not exceed $2,000 for a body corporate

Late Payment Penalties

If road user charges for a licence remain unpaid, the Act imposes the following penalties:

Initial Late Payment: If charges are unpaid three months after they were due, a penalty equal to 10% of the unpaid amount is added.
Failure to Pay After Assessment: If the RUC collector issues an assessment for unpaid charges under Section 53:
- An amount remaining unpaid two months after the assessment date incurs a 10% penalty.
- An amount remaining unpaid three months after the assessment date incurs a further 10% penalty (on top of the previous 10% penalty)

So should you hear any member express any thought that they may decide not to pay RUC as a form of protest against higher fuel prices, please advise them against taking this course of action. Instead encourage them to contact one of the NRC team to discuss what steps can be taken.

It is VERY hard to defend an operator against RUC offence allegations as they are deemed guilty unless proved innocent. Anyone that has been through a RUC audit can attest that it is not an enjoyable experience.

NZTA can and will liquidate a company to recover RUC debt.

Justin’s Transport Minute – 10/04/26

Justin Tighe-Umbers — Wed, 08 Apr 2026 23:24:43 +0000

Strait of Hormuz uncertainty, but NZ fuel supply remains strong

As I write this a fragile two-week ceasefire agreement between the United States and Iran is tentatively holding. One of the terms of that agreement is that Iran opens the Strait of Hormuz, which if held to may see some fuel shipping out of the Persian Gulf, providing shipping companies have confidence their vessels will be able to navigate a safe passage.

We watch and wait.

New Zealand Diesel Stocks

Diesel stocks remain stable, with just under 52 days of diesel reported Sunday 5 April. On shore, domestic distribution to pump sites also remains stable, with very few sites reported as running dry after the initial significant spike in demand fuel companies experienced in the first two weeks.

We are experiencing a major price shock, but not a supply shock.

Oil supply from Singapore and South Korea (providing approximately 80% of NZ supply) continues to be robust. Singapore has significantly increased import flows since the start of the conflict and is maintaining higher than normal volumes. It has among the most flexible refineries in the world for processing multiple crude blends, making it possible to import crude from many markets outside of the Middle East. Both South Korea and Singapore have increased crude supplies from the United States.

The takeaway for transport businesses is that there is no need to stockpile fuel, our supply remains strong.

National Road Carriers continues government engagement

We continue to attend daily meetings with the Ministry of Business, Innovation and Employment, and the Ministry of Transport.

Our principal focus has been to support Government efforts to explore how to increase road freight productivity to help offset fuel costs and providing expertise on how fuel allocation could work if Phase 3 or 4 was ever implemented, which is looking increasingly unlikely.

Unfortunately, regulatory changes providing meaningful uplifts to productivity are looking increasingly unlikely in the near term. Approving increased mass (heavier loads) is not a silver bullet for many reasons – mainly because our bridge stock and roading network has not been maintained well enough. This is another reason why NRC does not support a Road User Charge (RUC) discount – RUC pays for our road and bridge maintenance, and New Zealand is already years in arrears in maintaining our road network.

Outside of mass, the other option is to increase length. This is being explored, but even with regulatory approval it takes time to build and configure the trailers required, so would only deliver a very modest uplift in productivity in the short term.

Member support

The NRC team remains busy providing support to members through the crisis. We are seeing a significant increase in new members joining as transport operators look for help through the crisis. Services in demand are advice on the fuel adjustment factor and engaging with customers, cost modelling and understanding what the government response means for transport operators.

Don’t forget to use our member hub for the latest updates and guidance.

We are very aware that over the next week or so fuel accounts come up for payment. This will place a lot of transport operators under cashflow distress. Make the most of NRC services, we are here to help you through the tough times, and to lend a supportive ear when you are going through hardship. You can contact us at enquiries@natroad.co.nz

Justin

Ep 20 MITO – A Return to Industry Ownership

admin — Mon, 06 Apr 2026 22:47:23 +0000

Justin’s Transport Minute – 02/04/26

Justin Tighe-Umbers — Wed, 01 Apr 2026 20:13:42 +0000

Navigating the fuel shock: tough choices for transport operators

National Road Carriers this week has attended multiple daily meetings with government, continuing to play our part supporting the road freight industry through the oil price shock.

I am pleased to be able to say the government is making every effort to listen to businesses and industry, as well as the public, so that they know what assistance is needed. This is in stark contrast to the “we know best” approach taken during the Covid-19 pandemic.

The government cannot come to the rescue and shelter us from a global storm like this one. What they can do is provide support services to help weather it. The message is very clear, each individual and business needs to make the right decision for themselves as to how to respond to the increasing price of transport. No one is better placed to take those decisions affecting their businesses and families.

There is no emergency fund sitting in waiting to help the economy. The government is finding what they can from adjusting the operating budget to providing the in-work tax credit for those most in need, low-income working families who have to drive to work every day.

Some are calling for other support such as lowering road user charges and fuel excise duties. There are two problems with this. One, this is actually creating another form of debt, by reducing the amount of dollars we have to repair our roads, which are continually hammered with un-forecasted repair bills due to repeated weather events. Secondly, it reduces the price of diesel which then will increase the consumption at a time when we need to be prudent in case supply constraints emerge.

Stuart Donovan, a Senior Fellow at Motu Research has noted that “Allowing fuel prices to rise is reducing demand for fuel and, in turn, helping to preserve our supplies of diesel and petrol.” He points to the Ministry of Transport Fuel Response Monitoring Dashboard where the data confirms these changes.

There are no good choices left for New Zealand – we simply do not have the wealth to shield us from a price shock of this magnitude. Once we accept this fact, each of us is better placed to make the difficult decisions we need to make to get our businesses through.

Many of our members are facing the difficult decision of what to do if a customer won’t accept the increased fuel price. There is only one rational response – don’t deliver if a customer can’t afford the service. This is the way business works. Either a customer can pay for a service or they can’t – let them make that choice. Providing a service where a business is losing money is the fastest way to go under.

Diesel stocks

Wednesday’s report showed 52.2 days of diesel stock available, down two days from the 54.5 days reported on Monday.

Stocks remain healthy, and fuel importers are advising that there continue to be no signs of contracts or shipments not being met. April will be a critical month for learning how the restriction of crude exports from the Strait of Hormuz has affected downstream refineries.

Government exploring temporary regulatory relief to improve road freight productivity

Australia has been quick to the mark in helping the Road Freight industry weather the diesel price increases. The National Heavy Vehicle Regulator has provide a number of measures to give the industry a productivity lift, including temporary network access for higher-productivity vehicles, relaxing some curfew and operating hour restrictions, and providing some temporary route extensions.

Over here, National Road Carriers has joined industry representatives in working with the government to explore what options are available. Work is underway at pace, with the regulator looking to identify temporary productivity gains that could be granted without compromising safety or introducing long-term pavement damage.

Fuel Response Plan

The government launched the fuel response plan on Monday. Currently New Zealand is in Phase 1 of the plan. National Road Carriers have been working with government alongside the land transport industry for how any changes in Phase would be responded to, and providing advice on the proposed priority bands. Should any fuel access restrictions need to be put in place, priority access needs to be easy to understand and practical in how they are managed for road freight operators.

A time for hope

At National Road Carriers we are proud of the fact that our members keep in touch to let us know how they are getting on. We are seeing that while brave faces are put on, worries are increasing – with people wondering how will they will be able to keep up with all of the responsibilities of running a business when the price of diesel has doubled.

This weekend the country stops to celebrate Easter, a season of hope. What better time to step away from the day-to-day worries of running a business, and to appreciate all the things we have to be grateful for in our life. For most of us that is our family and loved ones we’ll be spending time with, and for the beautiful and peaceful country we get to call home.

Whether busy keeping the supply chain running or resting, I wish you a safe, and thoughtful Easter.

Justin

NRC Monthly Member Update Webinar – March 26

admin — Fri, 27 Mar 2026 00:25:38 +0000

A member update from NRC CEO Justin Tighe Umbers covering the current fuel price surge, what it means for transport operators, and the actions needed to protect margins. The session also touches on key industry priorities including safety, productivity improvements, and the shift toward greater energy resilience.

Justin’s Transport Minute – 27/03/26

Justin Tighe-Umbers — Thu, 26 Mar 2026 05:50:44 +0000

State of Emergency Declared in Northland

As the Transport Minute goes to print, a state of emergency has been declared in Northland, with one month’s worth of rainfall forecast to be dumped in 24 hours. My thoughts are with our members caught up in the flooding and road damage, please stay safe and look after one another. Thank you those who have been calling our team at NRC with updates on the road conditions. If you need assistance, please call NRC on 0800 686 777.

Government National Fuel Plan update on the way and other developments

Another week has passed and there have been fast moving developments for freight and supply chain operators.

Firstly what hasn’t changed.

New Zealand still has a healthy supply of diesel stocks, with 46.4 days of diesel stock in country and two weeks or less away on water.

Both the government and fuel companies advise that there have been no contracts or shipments not being met, and we are maintaining a five to seven week window of visibility of supply volumes.

Key developments that you need to know about:

The Ministerial Oversight Group met Wednesday evening and reviewed advice from officials on the steps in the National Fuel Plan. The plan outlines a four-level system that is stepped through in the event that fuel supplies to New Zealand become constrained in any way.

National Road Carriers and other industry representatives are providing advice to officials on practical steps needed to implement the plan should restrictions be required.

The updated National Fuel Plan is expected to be published imminently.

Officials have advised government that the current fuel prices are likely to remain high for months even if the conflict in the Middle East was to end today.

Minister Willis announced support measures for nearly 150,000 families that qualify for the in-work tax credit – part of the Working for Families scheme. The $50 a week credit is intended to help provide relief for the doubling of fuel prices.

National Road Carriers has made the case for targeted support to help transport operators in distress, as a critical part of the economic supply chain. The government however has made it clear that their ability to provide support to broader parts of the economy is extremely limited. The Minister of Finance Nicola Willis has stated that fiscal responsibility dictates that New Zealand cannot get into further debt, noting the $373 million of support is coming from the operational budget, not new debt.

Fuel Adjustment Factor an important tool, but must be applied properly

As fuel price volatility continues to buffet the transport sector, we are reminding members of the importance of using clear, consistent and accurate language if they are applying a Fuel Adjustment Factor (FAF) to pricing.

There is an important distinction to be understood – a Fuel Adjustment Factor is not a surcharge, and it should not be described or referenced as one in any customer communications, quotes or invoices. The term “surcharge” can imply an arbitrary or additional fee, which does not reflect the purpose of a FAF.

Instead, a FAF is a transparent pricing mechanism that enables transport operators to adjust for fluctuations in fuel costs over time. It is designed to ensure that changes in fuel prices, whether these are increases or decreases, are fairly reflected in the total cost of service.

Using a FAF benefits both operators and customers. Compared to “all-in-one” pricing, where fuel costs are embedded and less visible, a FAF provides clarity and transparency within the billing process. It allows customers to clearly see how fuel costs are calculated and how movements in fuel prices are impacting pricing over time.

Member monthly webinar

This week I was delighted to host the first of our monthly webinars where members dialled in online for an update from me on how NRC is working to help make the industry more productive, safer and resilient. We had strong attendance from members and partners, and a lot of interaction with members raising lots of questions on fuel price volatility, productivity and other topics. For those that missed out, check out the NRC website to find the webinar and a summary of the session.

And for new developments through the week, don’t forget to visit our Members Hub page.

Justin

You’re invited to the next Business Breakfast hosted by MITO.

admin — Wed, 25 Mar 2026 00:07:33 +0000

Whether you’re already involved in workplace training or curious about how it could benefit your business, the MITO Business Breakfasts are a great way to explore what’s possible.

MITO Business Breakfast events provide the opportunity to:

Meet the MITO team
Explore new training opportunities
Network
Hear about sector success stories.

Event Dates:

Wednesday 20 May, Palmerston North
Tuesday 26 May, Invercargill
Wednesday 3 June, Christchurch
Wednesday 22 July, Auckland
Wednesday 12 August, Wellington
Wednesday 16 September, Rotorua
Wednesday 14 October, Dunedin

Port CEOs Group appoints new Executive Director

admin — Thu, 19 Mar 2026 02:29:26 +0000

The Port CEOs Group has appointed Ian Bonnar as its Executive Director, supporting the Group’s role as a coordinated and constructive industry voice on national policy, regulatory and infrastructure matters.

The Port CEOs Group brings together the chief executives of New Zealand’s major ports as a forum for collaboration, policy engagement and strategic discussion on issues of national significance affecting the port system. The Group focuses on sector-wide perspective and constructive dialogue with Government and central agencies, while recognising the diversity of commercial environments across individual ports.

Ian brings extensive senior-level experience across leadership, public policy engagement and complex stakeholder environments, including executive leadership roles within major infrastructure providers, senior roles within Government and strategic consultancy.

Port CEOs Group Chair Graeme Sumner also thanked outgoing Executive Director Charles Finny for his service and contribution to the Group:

“Charles has played an important role in supporting coordination across the sector and in strengthening engagement with Government and policy agencies. The Group is grateful for his work and the experience he has brought to the role.”

The Chair said Ian’s appointment would support continuity of constructive and balanced sector representation:

“The Group exists to provide a clear, informed and nationally focused voice on issues affecting the port system. Ian brings strong relationship capability, a thoughtful and pragmatic approach, and significant experience working across complex public and stakeholder environments.”

Ian said he was looking forward to working with members and key partners:

“New Zealand’s ports play a critical role in the resilience, economic wellbeing and connectivity of the country. My focus will be on constructive, policy-level engagement, supporting thoughtful dialogue with Government and stakeholders, and helping ensure the sector’s perspective is well understood.”

Justin’s Transport Minute – 20/03/26

Justin Tighe-Umbers — Thu, 19 Mar 2026 02:25:15 +0000

National Road Carriers continues to work closely with the Government, providing industry expertise and advice to support planning New Zealand’s response to emerging fuel and supply chain impacts from the Iran conflict.

This week I attended another extraordinary session of the Freight Advisory Council, which is providing direct advice through to the Ministerial Oversight Group chaired by Minister Nicola Willis.

The two key messages I told government were the road freight sector’s essential need for visibility and confidence in fuel supply, and how truck operators have no choice but to pass through the fuel price increases to customers, who need to act in good faith and pay the true cost of transport.

Key takeaways:

we remain at Level 1 of the National Fuel Plan (as at the time of publishing).
the fuel supply to New Zealand remains stable, with healthy stocks despite the evolving conflict, and ten ships on the way.
the Government has said we need to prepare for the possibility of future fuel supplies being disrupted.

With the conflict about to enter its fourth week, here an update of the latest events impacting New Zealand’s transport operators.

Fuel price uncertainty grows, fuel stocks remain stable

Diesel price continues sharp climb

The fallout for New Zealand continues to be price shock rather than supply issues. The price of diesel has risen over 66% this month – a seismic shift close to that seen at the start of the Ukraine war. Diesel has increased by over $1 a litre, approaching $2.90 a litre. This continues to drive severe cashflow pain at the pump for transport operators.

NZ Fuel Supply

Fuel supplies remain stable, with health stocks. Diesel stock on hand has seen a minor reduction due to increased demand, dropping from 49.9 days on hand to 47.1. This reflects a spike in fuel buying rather than reduced supply, with some operators choosing to bulk purchase fuel prior to overnight price hikes.

The government is now moving to twice weekly updates of the fuel stock numbers, starting Monday.

Global oil supply continues to readjust to build additional supply outside of the Middle East. Some interesting datapoints from the last few days that shine a light on global oil supply perhaps being more robust than a full 20% reduction being reported:

CNN has reported that analyst figures suggest “Iran is managing to ship about 1 million barrels per day (bpd)” through the Strait of Hormuz last week, and “That compares with its average exports of 1.69 million bpd last year”. That tells us that while 20% of world oil goes through the Strait of Hormuz, currently over half of that appears to still being put into the global system.
Channel Infrastructure CEO Rob Buchanan talked about how the United States, South American and West African oil fields are ramping up oil production, which combined with declining demand because of the fuel price, will start to offset current restrictions from the Gulf.

Fuel companies under increased scrutiny from Commission

Last week the Commerce Commission announced it “is increasing its monitoring and scrutiny of petrol pump prices in response to higher and more volatile global wholesale prices, and will not hesitate to call out unjustified price increases at the pump”.

The Commission said the first report, or “initial aggregate analysis” issued last week raised no concerns. For those questioning the speed of fuel price escalation I recommend checking out the Commission’s Monitoring and Focus Report site.

Justin