Petrol prices in parts of New Zealand have climbed above $3 a litre, driven by escalating conflict in the Middle East and its impact on global oil markets. Motorists in the Kapiti Coast region reported paying $3.019 for 95 octane petrol at the Z Kapiti Road station on Friday morning, while g.a.s Waikanae was charging $3.059 for the same grade, according to the fuel price monitoring app Gaspy.
The increase is causing concern among consumers. An Otaki resident told RNZ she proactively filled her vehicle’s tank twice, anticipating further price rises. “I gassed up yesterday and I gassed it up again now, before it shoots up in price. It’s only a matter of time,” she said.
Bill Turner, a Kapiti Coast resident, noted a 12-cent increase in the price of 91 octane petrol at his local station within the past week, straining his household budget. “I’m lucky I’ve got a business. I should be retired but I’m still working to pay for this,” he stated.
Gaspy spokesperson Mike Newton confirmed that rising prices were not limited to the Kapiti Coast. Stations in more isolated areas, such as NPD Fox Glacier ($3.089 for 95) and Greymouth, were also approaching or exceeding the $3 per litre mark. “We’re definitely seeing more and more stations getting closer to that mark,” Newton said. He added that the uncertainty surrounding the Middle East conflict is expected to continue driving prices upward, drawing parallels to the price surges experienced following Russia’s invasion of Ukraine.
Newton indicated the national average price for 91 octane petrol currently stands at $2.66 a litre. He also noted that Kapiti stations have seen increases ranging from 8 to 15 cents in the last week, exceeding regional and national averages. The Wellington region experienced a 4-cent increase over the same period.
AA policy advisor Terry Collins observed a price of $2.48 to $2.50 for 91 octane in Wellington on Friday, still considering it a relatively good deal, compared to $2.79 at Mobil Karori and $2.85 at Z Taranaki St. He pointed to rising oil futures, which reached US$85 a barrel, a 12-cent increase from earlier in the week, as a key factor. “I can’t see it getting cheaper in March, I sense it’s on an upward trajectory,” Collins said.
Infometrics chief executive Brad Olsen stated that 95 octane reaching $3 a litre signals a broader trend. He estimated a potential 30-cent-plus per litre increase over the coming week, based on current oil prices. If oil prices were to reach US$100 a barrel, Olsen projected 95 octane could climb to $3.20 or $3.30 a litre. He also highlighted the potential for rising diesel prices to impact the commercial sector and exacerbate inflationary pressures.
Olsen explained that existing fuel supplies are currently moderating price increases, but cautioned that the cycle of ordering and selling fuel at higher prices could prolong the impact of the conflict. He added that the goal of bringing inflation back within the target range may need to be revised due to these rising fuel costs.
