Tukunga pāpāho

Fuel crisis hitting rural school attendance and budgets

27 Hara 2026

School leaders say the continued rise in fuel costs is not only biting into the budgets of rural schools but is also impacting student attendance, and they are urging the Government to increase funding for day-to-day operations.

The impact of the fuel crisis is a key topic of concern for school leaders gathering this week (27-29 May) at the Rural and Teaching Principals’ Conference, organised by NZEI Te Riu Roa.

Adam Tamariki, Principal at Te Paina School in Mercer and NZEI Te Riu Roa member, said the school has been impacted significantly as many of its students live outside of the local area.

“Some students are not able to attend school regularly due to travel costs and some families have begun carpooling where possible,” Mr Tamariki said. 

“While higher fuel prices have worsened the cost-of-living pressures on families, the flow-on impacts are on attendance and student wellbeing.”

Mr Tamariki said the fuel crisis is directly hitting both the school’s operational budget and its staff. The costs of fuelling the school van or paying for school buses have risen significantly, while school staff wanting to attend PLD training are constrained by the cost of travel or using their own vehicles.

“This has a huge impact on a small rural school like ours that does not have a thriving revenue stream and relies heavily on operational funding from the Ministry of Education (MOE),” he said.

Ally Gibbs, Principal of Mulberry Grove School on Great Barrier Island and NZEI Te Riu Roa member, said the rise in fuel costs is impacting the island community and the school’s budget.

“Living costs on the island have always been higher, but the fuel crisis has amplified this pressure. A loaf of bread costs around $7, and for larger families, the cost of feeding everyone is becoming increasingly challenging.”

“Many families are finding it tough. Winter can be particularly difficult as employment on the island is seasonal. Some families are facing hard choices between putting fuel in the car, buying food, or keeping generators running for lights, refrigeration, and basic household needs.

Ms Gibbs said freight costs – which have now increased to $3 - $5 per kilo – are also impacting the school’s budget. 

“Although solar is the school’s primary energy source, we use a gas-electric heating system and gas prices have increased considerably just as we head into winter.”

Sonya Hockley, Hukerenui School Acting Principal and NZEI Te Riu Roa Principals’ Council member, said the school budget has been hit alongside the incomes of families of students attending the Northland school. 

“Our community has been significantly impacted in their everyday lives as many are farmers, and fuel is a daily expense. The cost of fuel in the far North is high and prices change constantly,” Mrs Hockley said.

“Fortunately, we have a bus system, and the majority of children come to school by bus.”

Mrs Hockley said the most noticeable impacts have been a recent reluctance from parents to transport children or teams to sports events. Teachers and school staff are now claiming mileage when attending PLD training or transporting students using their own vehicles.

“Before the fuel crisis, staff would rarely claim mileage. Now, the school also avoids booking buses for transport to sport or cultural events as the costs can be prohibitive,” she said.

“Hukerenui is a U4 school, so it does not receive fuel relief from the MOE. But rural schools, no matter the size, will be impacted the longer this crisis drags on.” 

The ‘U” grade refers to a school’s roll size. A U4 school has between 151 to 300 students.