The rising price of diesel is concerning many in the agricultural sector who depend on the fuel to run their businesses.
Since December, the price of a litre of diesel has gone up an astonishing 16c to around $1.41.
The Road Transport Forum is warning the increasing cost puts pressure on producers, who in turn, will have to recoup that money elsewhere.
Forum CEO Ken Shirley says prices right now are impossible to plan for, as the global market is incredibly unstable.
"There has been a sudden increase in price since December which has been a bit of a shock, because it’s gone to $1.40/litre.
"Back in 2008 we had a peak of close to $2/litre."
"But the problem is the volatility and the movement of prices makes it extremely difficult for the freight sector."
Mr Shirley says this makes it tough for businesses to keep their prices down, and consumers may feel a backlash.
"The expectation is that we are going to have a period of very volatile fuel prices...part of the global energy supply cycle and movement of prices and this is a very bumpy period."
Federated Farmers Transport spokesperson Donald Aubrey says agriculture feels the pinch more than most other industries, as diesel makes up a huge part of overhead costs.
"Agriculture as a sector is venerable to fuel prices rising ac
ross the board.
"It has an immediate and widespread impact on all aspects of farm production within New Zealand."
Mr Aubrey says like it or not, farmers have no alternatives, so they’re stuck with the cost of fuel, whatever it may be.
