Oil Price Surge Sparks Fears of Higher Petrol Costs for Kiwis

The recent surge in oil prices has New Zealanders bracing for another hit to their wallets. The price of Brent crude oil has reached a six-week high, with US$96 (NZ$165) per barrel, as tensions between Iran and the US continue.

Westpac chief economist Kelly Eckhold says this is not an isolated event and that Kiwis should prepare for higher petrol prices. 'No, no, it's not over by any stretch of the imagination,' he warned.

Eckhold believes global oil prices will remain high, with 91 petrol potentially reaching levels last seen in May. Currently, the average price is around $2.89 per litre, according to Gaspy fuel monitoring website.

The ongoing crisis has been exacerbated by concerns over a backup route through the Red Sea being affected by threats from Yemen's Iran-backed Houthi rebels. Global inventories for refined petrol that New Zealand needs are also at lower levels.