Motorists in New Zealand are facing steep fuel prices, with some locations charging over $4 per litre for 95 petrol. In Auckland, one station was advertising 95 petrol at $4.11 and 91 petrol at $3.89. According to Gaspy, the national average for 95 petrol stands at $3.80, marking an 11% increase over the past 28 days. The average price for 91 petrol is $3.61, while diesel is priced at $3.23.
AA spokesperson Terry Collins noted that while a few stations are charging more than $4, most are just under that threshold. He suggested that petrol stations may be avoiding the psychological barrier of crossing the $4 mark. Collins also indicated that fuel price relief is unlikely in the near future, citing higher demand expected next year, which will maintain upward pressure on prices.
Senior economist Miles Workman from ANZ highlighted several factors contributing to the high fuel costs, including exceptionally high freight costs and a weak New Zealand dollar. He emphasized that current indicators, such as crack spreads, global oil prices, and shipping costs, do not show signs of improvement in the near term. Workman also pointed out that any resolution to conflicts in the Middle East would not immediately lower prices, as rebuilding oil production and inventories would take time.
Gaspy reported that the cost of 91 petrol has surpassed the previous record of just over $3.50. Workman cautioned that due to global uncertainties, economies might rebuild fuel stocks to higher levels than before, suggesting that elevated price pressures could persist for an extended period.