The Interislander ferry service is dramatically increasing its fuel surcharge to 54.4 percent for commercial vehicles and trucks crossing Cook Strait, nearly doubling the previous rate. KiwiRail, which operates the ferry, attributes the steep hike to soaring energy prices stemming from the ongoing Middle East conflict, saying the company can no longer absorb the mounting cost pressures.

The move reflects broader pressures hitting international shipping, with global company Maersk announcing its own 27 percent fuel surcharge. Industry experts warn these increased transportation costs will inevitably be passed on to consumers as the conflict continues to disrupt energy markets. Minister for Rail Winston Peters has backed the decision, acknowledging the ferry service's financial constraints amid the volatile energy environment.