Kiwi petrol prices hit all-time high exceeding $3.50 per litre

Kiwi drivers are facing record-high fuel prices, with the average cost of a litre of 91 octane petrol surpassing $3.50, according to fuel monitor Gaspy. This new record breaks the previous high set in early April, following strikes on Iran by the US and Israel. The national average price had reached $3.49 earlier on Monday before climbing further.

The latest increase comes amid sustained high global oil prices, with Brent crude stalling above US$100 a barrel. Prices have risen in major cities like Auckland, Wellington, and Christchurch, as well as across the rest of New Zealand. ASB acting chief economist Kim Mundy noted that a weak New Zealand dollar is exacerbating the impact of high global oil prices, making fuel imports more expensive.

Mundy warned that higher fuel costs will strain household budgets, leaving less money for other essentials. The recent surge in pump prices follows earlier spikes after the Iran strikes and fluctuations in early September. The conflict in the Middle East and Ukraine's targeting of Russian oil facilities have contributed to the persistent high oil prices.

Additionally, Chinese refiners have suspended some fuel exports, including to Singapore, a key supplier of refined fuel to New Zealand. The G7 nations have pledged to release 100 million barrels of oil and diesel to address global supply concerns, following a US threat to restrict diesel exports to manage domestic prices.