Auckland (The NZ Today)
New Zealand’s fuel price surge has pushed premium petrol beyond $4 a litre at some service stations, with motorists being warned there may be little relief before Christmas.
A BP station in New Lynn was displaying 95 petrol at $4.11 a litre on Friday, while 91 was priced at $3.89.
The $4 mark has so far been breached by only a small number of stations, but prices across the country have continued climbing sharply.
Gaspy figures put the national average for 95 at around $3.80 a litre, about 11 percent higher than four weeks ago. The average for 91 is now about $3.61, while diesel is sitting near $3.23.
The latest jump is being driven by more than just the price of crude oil.
New Zealand imports its refined fuel, leaving pump prices exposed to shipping costs, international refining margins and the value of the New Zealand dollar.
ANZ says freight costs remain unusually high, while the weaker Kiwi dollar is making every shipment more expensive once converted into local currency.
That combination means motorists can still face higher prices even when movements in global oil markets appear more favourable.
AA spokesperson Terry Collins said many stations appeared reluctant to cross the $4 threshold, but warned there was no clear sign of a meaningful fall in prices.
He expects pressure to remain through at least the Christmas period, with global fuel demand also forecast to strengthen.
ANZ senior economist Miles Workman told RNZ that the indicators normally watched for signs of relief — oil prices, refining margins, freight and the exchange rate — were not yet moving in a direction that would substantially lower prices at the pump.
The Middle East remains another major uncertainty.
Even if tensions eased quickly, lost production could take time to restore. At the same time, countries that have drawn down fuel reserves may eventually need to rebuild them, potentially adding another layer of demand.
Meanwhile, for the New Zealand households, the impact is already starting to show in spending figures. Card spending on fuel rose 2.9 percent in September, as more money was required simply to buy the same tank of petrol.
The key issue now is not only whether international oil prices fall, but whether freight costs ease and the New Zealand dollar strengthens enough for those savings to reach local service stations.
Until then, prices above $4 may no longer remain an isolated sight.
Source: RNZ reporting and Gaspy
