Petrol prices in New Zealand hit an all-time high as the national average for 91 octane crossed $3.50 per litre. The record follows soaring global crude costs driven by Middle Eastern conflict, alongside a sharp decline in the New Zealand dollar that makes imported fuel significantly more expensive.
Motorists across New Zealand are facing unprecedented pain at service stations as fuel monitoring platform Gaspy reported that the national average for 91 octane has climbed past the previous record of just over $3.50, set in early April. The new high follows a day where the average sat at $3.49 before pushing higher across Auckland, Wellington, Christchurch, and regions nationwide.
Global Crude Benchmarks and Middle East Supply Disruptions
The climb at local pumps traces back to relentless volatility in international energy markets. Global oil benchmark Brent Crude has remained stalled above US$100 a barrel, sitting at US$101.5 according to fuel monitoring site Gaspy. Prices initially spiked following the US-Israel conflict with Iran that began at the end of February, when Brent crude surged to a peak of $126 a barrel before briefly dipping.
Hostilities have since re-escalated across multiple fronts. US forces struck five Iranian tankers after Tehran targeted one of its warships, while Yemen’s Iran-backed Houthi movement attacked oil facilities in Saudi Arabia. Macquarie University energy expert Lurion De Mello told Newstalk ZB that price pressures extend beyond the Strait of Hormuz to supply constraints emerging from Russia.
Exchange Rate Pressures and Refining Costs
High commodity prices are compounded at the domestic border by a severely weakened currency.
“Because global oil prices are high, when we bring that into the country, that flows through into the price we see at the pump. But at the moment there’s also another element coming through in the fact that the New Zealand dollar is quite low. So, it’s also costing us more from an exchange rate point of view to import that fuel.”
Kim Mundy, ASB acting chief economist
The New Zealand dollar has dropped roughly 7% since August, trading near one-year lows at around 55.8 US cents. Furthermore, De Mello noted that shipping and insurance costs have risen so sharply that getting crude to a refinery pushes effective delivery expenses well above the benchmark.
Impact on Household Budgets and Road Freight Costs
The surging cost of transportation extends far beyond private passenger vehicles, threatening broader supply chains. According to Transporting New Zealand, 93% of the country’s goods are moved by road, with almost all freight trucks running on diesel. Average diesel prices have jumped more than 50 cents a litre over the last 28 days.
When fuel overheads increase, freight operators pass those losses downstream to commercial clients and ultimately to everyday shoppers. For households, Mundy noted the direct squeeze on discretionary spending: If you’re having to pay more every time you go and fill your car up at the pump, there’s just less money at the end of the day to spend on other things.
International Export Bans and Global Relief Pledges
International markets face additional uncertainty over potential trade restrictions. Donald Trump announced that he was considering banning the export of diesel from the US—a move Westpac chief economist Kelly Eckhold warned would act like dropping a nuclear bomb on global markets and potentially trigger another 50-cent jump at pumps.
Meanwhile, the G7 group of advanced economies has pledged to release 100 million barrels of oil and diesel from strategic reserves to ease supply constraints. When questioned about whether a diesel export ban was off the table, Trump credited European diesel production, stating Europe was great because they’re putting a lot of diesel oil out there
as reported by 1news.
