Auckland (The NZ Today) – New Zealand is facing one of the sharpest increases in fuel costs in the world on a per-person basis, with new analysis ranking the country fourth globally for the impact of this year’s oil-price shock.
Data from the Centre for Research on Energy and Clean Air estimates the surge in global oil prices has added about US$468 billion — roughly NZ$833 billion — to the world’s fuel bill.
The United States recorded the largest overall increase, followed by Canada and Australia, with New Zealand ranking fourth on a per-capita basis.
New Zealand has also recorded the 10th-largest increase in diesel prices globally compared with pre-conflict levels, with diesel up by around US55 cents, or about NZ99 cents, a litre.
Westpac chief economist Kelly Eckhold said New Zealand’s high level of car ownership and relatively limited public transport outside major urban centres left households particularly exposed to higher fuel prices.
He said fuel spending per person was up about 27 percent from a year earlier, even though the implied volume of fuel being bought had fallen by roughly 12 percent.
That suggests households are paying substantially more while driving less.
Eckhold also pointed to an increase in public transport spending as evidence that some people are changing their behaviour in response to higher petrol and diesel costs.
Simplicity chief economist Shamubeel Eaqub told RNZ New Zealand’s vulnerability extended beyond motorists because the country relies heavily on imported goods and long-distance transport.
Higher fuel costs can therefore flow through into freight, distribution and ultimately the prices consumers pay for everyday products.
Latest Gaspy figures cited by RNZ showed the national average price for 91 petrol at $3.51 a litre on Thursday, up 3 percent over the previous 28 days.
Diesel averaged $3.17 a litre, up 1.46 percent over the same period.
The cheapest 91 petrol identified in the data was at Tasman Epsom, where it was selling for $3.19 a litre.
Economists say the rise in fuel costs is likely to squeeze household budgets further, particularly for families that have little choice but to drive regularly.
Higher spending at the pump also leaves less money available for discretionary purchases, potentially adding another drag on consumer spending and the wider economy.
Source: RNZ
