NZ Fuel Prices Soar Past $3/Liter as Global Oil Prices Surge

Global oil prices have surged past $100 per barrel again, pushing New Zealand's fuel prices above $3 a liter. According to Westpac chief economist Kelly Eckhold, this is due to ongoing tensions in the Middle East and concerns about supply disruptions.

The price of fuel is made up of several components, including dated Brent physical oil prices, refining margins, shipping costs, and the exchange rate. With the US dollar falling against the New Zealand dollar, these costs are adding up for Kiwi motorists.

Infometrics managing director Gareth Kiernan believes that while some price changes have already been reflected at the pump, there may still be upward pressure on fuel prices in the coming weeks. He notes that global demand is increasing, particularly from China, which has been running down its reserves and suppressing demand internationally.