March 23, 2026 • 7 mins
Graham Butcher says fuel supply issues could well be something that will need to be factored in over the next few months.
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Speaker 1 (00:07):
This is the muster one.
Speaker 2 (00:08):
Haknui Graham, butcher Farm consultant, joins us once again and
studio Graham.
Speaker 1 (00:14):
How are you.
Speaker 3 (00:14):
I'm very good at ending yourself.
Speaker 2 (00:16):
Pretty good. The weathers, well, we'll talk about the weather
before we carry on. Depending on where you are in
the province, it's either been a feast or a bit
of a famine.
Speaker 3 (00:25):
Well, yes, so we're getting some sunshine now, sort of
a late summer, I suppose, because we didn't really get
a summers. All moistures variable around the country. Feed supplies yeah,
okay in some areas, not so good in others, probably
overall declining. So we're heading into winter. So hopefully people
have got their idea of where they first to make
(00:47):
covers need to be on the managing towards that.
Speaker 2 (00:49):
A lot of things to try and manage at the moment,
namely the American President and what's.
Speaker 1 (00:53):
Going to come out of his mouth next.
Speaker 2 (00:55):
But that by the way, So we're just looking at
the situation with fuelers there for this country.
Speaker 3 (01:01):
Yeah, I did a bit of googling this morning just
to get rips with what New Zealand situation currently is.
Varies a bit depending where you get your information. But
in country petrol reserves apparently is around twenty seven days,
and in country diesel reserves about twenty one days. Apparently
there's about twenty two days on a ship or ships.
I don't know whether there's one, two or three, so
(01:23):
hopefully more than one because it breaks down. I think
we might be in a bit of trouble. As I said,
it depends where you get your information from MBIE. On
shore diesel reserves, apparently you're going to run out in
twelve days according to them, not a long time, so
it becomes a I think we're on a bit of
an eye fage as far as diesel goes. I think
(01:45):
rationing is happening at the moment. I had a talking
to a contractor client. He got the truck and to
fill his diesel tanks up. There were three quarters full.
They turned around and went out the gate, so sorry,
you've got enough. So it is. It's happening, So probably
fair enough if you only got twelve days reserve. We
need to think real hard about that. But anyway, so
on a bit of an ife age, so we just
(02:06):
have to deal that at the moment. And the big
unknown is how long is this going to go on
for We just don't know. Our history would probably suggest
that it's going to be longer than we think.
Speaker 2 (02:16):
So what do we do then to give a bit
of a respite from the pump? I mean I brought
the suggestion up with Penny Simmons yesterday.
Speaker 1 (02:23):
The changes the road us to charges.
Speaker 2 (02:25):
I think they happened maybe around eighty months ago, a
roundabouts to give a take and actually just take going
back to the old levels to give people a bit
of a respite, But then money misses out going to
other places. This is all happening at exactly the wrong time.
Speaker 3 (02:39):
If you compare diesel with petrol, at the moment, diesel's
probably about twenty cents on average over New Zealand less
than ninety one petrol. Ninety one penyl has seventy cents
in terms of petrol tax in it. But we've got
to add road user charges to that diesel price. So
diesel and taking everything into account, is probably a bit
more expensive than ninety one petrol. The road user charges
(03:01):
it for up to six ton vehicle eighty dollars per
thousand k's, but for big trucks eighteen ton as it's
well over four hundred dollars per thousand caves. So it's
getting up there and it's hurting. Because the fuel prices
go up, it affects basically everything, everything goes up. So,
(03:22):
as I said, diesel, we're on a bit of an iphage,
and I think the Iran situation are gone a bit
longer than people are anticipating. The odd thing is New
Zealand has confirmed about forty bit over forty five million
barrels of known oil reserves forty five million barrels, and
as well as that, on top of that natural gas
(03:44):
which doesn't relate to transport, we have seventy seven million
cubic meters and known reserves thanks to the Labor government
and twoenty and twenty two they shut Marsden Point. They
not only shut it, they vandalized it. And in twenty
and eighteen they did a ban on oil and gas exploration.
So hence we're finding ourselves in a position where we're
(04:07):
totally reliant on imports. We have we had the ability
to produce our own petrol and diesel here in New Zealand,
and carbon dioxide and road bitchmen and what have you,
because that's all affected by petrochemicals. So it's it's we're
in a difficult knife ease position, but it's partly our fault.
Speaker 2 (04:28):
There's no chance of Marson Point being reopened, is.
Speaker 3 (04:31):
That as far as I'm aware. If they're going to
have a refinery, it's got to be built from scratch, because,
as I said, it was vandalized, that was completely destroyed.
Speaker 2 (04:39):
Right then you listen, are you hearing of people looking
at EV options and stuff? I mean, nothing's up the
table at the moment.
Speaker 3 (04:46):
Well, I heard a news report that EV sales are
up thirty percent, So yes, certainly thinking about it.
Speaker 1 (04:53):
Senses are practical.
Speaker 3 (04:55):
I had had one client ring up, had a discussion
on EV bikes. Know much about and don't know what
their ranges are, but some people are thinking about it,
no question.
Speaker 1 (05:04):
No, you're talking side by sides and that probably more motorbikes. Yeah,
two wheelers.
Speaker 3 (05:10):
Situation. Now, farmers just got to be very cautious what
they do with the cash that they have in the bank.
They have to sit up this war, I think is
the way to approach it.
Speaker 2 (05:22):
But sitting out of war is not going to get
the harvest done, not going to get the sea back
in the ground, not going to keep production going.
Speaker 3 (05:28):
No, there's a central expenditure you have to do. You
have to protect your future production. But you just got
to be cautious. We've got to go back to that
mindset we had about a year ago, which is unfortunate
because we're getting into January February feet and pee farmers
got the head a bit of water. They took some
deep breaths and say this is good. We've got to
go and this bigger hand came down and just push
(05:50):
them under again.
Speaker 2 (05:51):
Well, okay, Graham, Butcher's Prime minister for a couple of days.
What would you do to alleviate the pressure on Kiwi's.
Speaker 3 (05:57):
I'd certainly get oil and gas exploration going again, and
that's happening the government of reversing that. I'll be taking
a serious look at Marsden Point. A whole lot of
other things that are not related to fuel. I'd probably
be thinking hard about which we probably don't want to
talk about it.
Speaker 1 (06:15):
We're keeping this in the context of fuel.
Speaker 3 (06:17):
Yes, exactly, so. I think Marsden Point is a critical issue.
I mean, it's such a strategic assay at Marsden Point,
it's absolutely critical. The if well, a few months ago
I read somewhere that New Zealand would have had we
had a for refinery, we would have the ability to
(06:37):
keep all the essential services going if the ship stopped.
And that's pretty important why the decision was made to
shut it. I just don't know.
Speaker 1 (06:46):
There was the government of the day. We won't talk
about that, Graham.
Speaker 2 (06:49):
We keep it on the current tents here on the
must always appreciate your time.
Speaker 1 (06:53):
Thank you, Graham.
Speaker 2 (06:56):
Butcher Farm Consultant sobering facts around fuel as well, remembering too,
if you're coming into town and need a bit of gas,
Monday traditionally is the cheapest day to go and buy
it because that is when they do the deals. I
think it's twelve percents off at the South Sir of Pumps,
and Thursday up to eighteen cents. Guess BC app download it.
(07:16):
It is a truly fantastic tool, especially at the moment
trying to will save money. Let's be honest, it is
what it is. Abby White's up next, talking young farmers.
This is the muster one.
Speaker 2 (00:08):
Haknui Graham, butcher Farm consultant, joins us once again and
studio Graham.
Speaker 1 (00:14):
How are you.
Speaker 3 (00:14):
I'm very good at ending yourself.
Speaker 2 (00:16):
Pretty good. The weathers, well, we'll talk about the weather
before we carry on. Depending on where you are in
the province, it's either been a feast or a bit
of a famine.
Speaker 3 (00:25):
Well, yes, so we're getting some sunshine now, sort of
a late summer, I suppose, because we didn't really get
a summers. All moistures variable around the country. Feed supplies yeah,
okay in some areas, not so good in others, probably
overall declining. So we're heading into winter. So hopefully people
have got their idea of where they first to make
(00:47):
covers need to be on the managing towards that.
Speaker 2 (00:49):
A lot of things to try and manage at the moment,
namely the American President and what's.
Speaker 1 (00:53):
Going to come out of his mouth next.
Speaker 2 (00:55):
But that by the way, So we're just looking at
the situation with fuelers there for this country.
Speaker 3 (01:01):
Yeah, I did a bit of googling this morning just
to get rips with what New Zealand situation currently is.
Varies a bit depending where you get your information. But
in country petrol reserves apparently is around twenty seven days,
and in country diesel reserves about twenty one days. Apparently
there's about twenty two days on a ship or ships.
I don't know whether there's one, two or three, so
(01:23):
hopefully more than one because it breaks down. I think
we might be in a bit of trouble. As I said,
it depends where you get your information from MBIE. On
shore diesel reserves, apparently you're going to run out in
twelve days according to them, not a long time, so
it becomes a I think we're on a bit of
an eye fage as far as diesel goes. I think
(01:45):
rationing is happening at the moment. I had a talking
to a contractor client. He got the truck and to
fill his diesel tanks up. There were three quarters full.
They turned around and went out the gate, so sorry,
you've got enough. So it is. It's happening, So probably
fair enough if you only got twelve days reserve. We
need to think real hard about that. But anyway, so
on a bit of an ife age, so we just
(02:06):
have to deal that at the moment. And the big
unknown is how long is this going to go on
for We just don't know. Our history would probably suggest
that it's going to be longer than we think.
Speaker 2 (02:16):
So what do we do then to give a bit
of a respite from the pump? I mean I brought
the suggestion up with Penny Simmons yesterday.
Speaker 1 (02:23):
The changes the road us to charges.
Speaker 2 (02:25):
I think they happened maybe around eighty months ago, a
roundabouts to give a take and actually just take going
back to the old levels to give people a bit
of a respite, But then money misses out going to
other places. This is all happening at exactly the wrong time.
Speaker 3 (02:39):
If you compare diesel with petrol, at the moment, diesel's
probably about twenty cents on average over New Zealand less
than ninety one petrol. Ninety one penyl has seventy cents
in terms of petrol tax in it. But we've got
to add road user charges to that diesel price. So
diesel and taking everything into account, is probably a bit
more expensive than ninety one petrol. The road user charges
(03:01):
it for up to six ton vehicle eighty dollars per
thousand k's, but for big trucks eighteen ton as it's
well over four hundred dollars per thousand caves. So it's
getting up there and it's hurting. Because the fuel prices
go up, it affects basically everything, everything goes up. So,
(03:22):
as I said, diesel, we're on a bit of an iphage,
and I think the Iran situation are gone a bit
longer than people are anticipating. The odd thing is New
Zealand has confirmed about forty bit over forty five million
barrels of known oil reserves forty five million barrels, and
as well as that, on top of that natural gas
(03:44):
which doesn't relate to transport, we have seventy seven million
cubic meters and known reserves thanks to the Labor government
and twoenty and twenty two they shut Marsden Point. They
not only shut it, they vandalized it. And in twenty
and eighteen they did a ban on oil and gas exploration.
So hence we're finding ourselves in a position where we're
(04:07):
totally reliant on imports. We have we had the ability
to produce our own petrol and diesel here in New Zealand,
and carbon dioxide and road bitchmen and what have you,
because that's all affected by petrochemicals. So it's it's we're
in a difficult knife ease position, but it's partly our fault.
Speaker 2 (04:28):
There's no chance of Marson Point being reopened, is.
Speaker 3 (04:31):
That as far as I'm aware. If they're going to
have a refinery, it's got to be built from scratch, because,
as I said, it was vandalized, that was completely destroyed.
Speaker 2 (04:39):
Right then you listen, are you hearing of people looking
at EV options and stuff? I mean, nothing's up the
table at the moment.
Speaker 3 (04:46):
Well, I heard a news report that EV sales are
up thirty percent, So yes, certainly thinking about it.
Speaker 1 (04:53):
Senses are practical.
Speaker 3 (04:55):
I had had one client ring up, had a discussion
on EV bikes. Know much about and don't know what
their ranges are, but some people are thinking about it,
no question.
Speaker 1 (05:04):
No, you're talking side by sides and that probably more motorbikes. Yeah,
two wheelers.
Speaker 3 (05:10):
Situation. Now, farmers just got to be very cautious what
they do with the cash that they have in the bank.
They have to sit up this war, I think is
the way to approach it.
Speaker 2 (05:22):
But sitting out of war is not going to get
the harvest done, not going to get the sea back
in the ground, not going to keep production going.
Speaker 3 (05:28):
No, there's a central expenditure you have to do. You
have to protect your future production. But you just got
to be cautious. We've got to go back to that
mindset we had about a year ago, which is unfortunate
because we're getting into January February feet and pee farmers
got the head a bit of water. They took some
deep breaths and say this is good. We've got to
go and this bigger hand came down and just push
(05:50):
them under again.
Speaker 2 (05:51):
Well, okay, Graham, Butcher's Prime minister for a couple of days.
What would you do to alleviate the pressure on Kiwi's.
Speaker 3 (05:57):
I'd certainly get oil and gas exploration going again, and
that's happening the government of reversing that. I'll be taking
a serious look at Marsden Point. A whole lot of
other things that are not related to fuel. I'd probably
be thinking hard about which we probably don't want to
talk about it.
Speaker 1 (06:15):
We're keeping this in the context of fuel.
Speaker 3 (06:17):
Yes, exactly, so. I think Marsden Point is a critical issue.
I mean, it's such a strategic assay at Marsden Point,
it's absolutely critical. The if well, a few months ago
I read somewhere that New Zealand would have had we
had a for refinery, we would have the ability to
(06:37):
keep all the essential services going if the ship stopped.
And that's pretty important why the decision was made to
shut it. I just don't know.
Speaker 1 (06:46):
There was the government of the day. We won't talk
about that, Graham.
Speaker 2 (06:49):
We keep it on the current tents here on the
must always appreciate your time.
Speaker 1 (06:53):
Thank you, Graham.
Speaker 2 (06:56):
Butcher Farm Consultant sobering facts around fuel as well, remembering too,
if you're coming into town and need a bit of gas,
Monday traditionally is the cheapest day to go and buy
it because that is when they do the deals. I
think it's twelve percents off at the South Sir of Pumps,
and Thursday up to eighteen cents. Guess BC app download it.
(07:16):
It is a truly fantastic tool, especially at the moment
trying to will save money. Let's be honest, it is
what it is. Abby White's up next, talking young farmers.
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