New Zealand motorists are facing sharply rising petrol prices, with the average cost of 91 octane fuel now exceeding $3 per litre – a 20 percent increase since the beginning of March, according to price monitoring app Gaspy.
The surge in prices is being attributed largely to escalating tensions in the Middle East and disruptions to maritime traffic through the Strait of Hormuz, a critical waterway for global oil supplies. U.S. President Donald Trump has called for international naval deployments to secure the strait, which is experiencing closures due to attacks aimed at halting oil tankers.
Several petrol stations across the country experienced temporary supply issues over the weekend, particularly those branded Gull, though fuel companies maintain there is no overall supply shortage. Mike Newton, a spokesperson for Gaspy, explained that the issue is not a lack of fuel in tanks, but rather logistical challenges in transporting it to stations. “Hopefully we’ll start to see that be alleviated in the next couple of days,” he said.
The current prices are approaching levels seen after the Russian invasion of Ukraine, when the previous government temporarily cut fuel excise taxes. Still, Finance Minister Nicola Willis has indicated her government is less inclined to repeat that measure. “We’re starting to get into that territory and this government has said they’re less interested in doing that… So it’ll be interesting to see when the pressure starts to build,” Newton noted.
Willis stated the government is closely monitoring fuel stock levels, with New Zealand currently holding approximately 32 days’ worth of fuel within the country and an additional 25 days’ worth en route by ship. “There is no current issue with the availability of fuel,” she said, adding that fuel companies have not reported any disruptions to orders.
Waitomo chief executive Simon Parham reported a 15 percent increase in demand at his company’s stations, but downplayed concerns about shortages. “We’ve had the odd run out from here and there, but it’s really been for a maximum of 30 minutes,” he said, attributing temporary outages to logistical delays. He expects demand to soften, stating, “There’s no need to panic.”
Westpac chief economist Kelly Eckhold warned that April could be a challenging month if conditions do not improve, predicting potential feedstock shortages for Asian refiners. He cautioned that a rise in Brent crude to US$150 a barrel would have significant negative impacts on businesses and consumers.
Willis has dismissed suggestions of a temporary fuel excise tax cut, deeming it too broad a measure. She indicated she is examining the impact of rising fuel costs on low-income working New Zealanders and considering whether a targeted government response is warranted. She also defended her government’s decision to conclude the electric vehicle rebate scheme, arguing it was poorly targeted and benefited wealthier individuals.
Dayton Howie, owner of Kiwi Coaches, said rising petrol prices are eroding his company’s margins, and that school trips could be affected if prices continue to climb.
The government has not yet reviewed its sanctions on Russian-origin oil, but Willis stated that the situation is evolving and will be reassessed if necessary.
