New Zealand petrol prices top $4 as retail costs climb
Motorists in parts of Auckland faced petrol prices topping $4 a litre on Friday, as retail fuel costs climbed amid a weak New Zealand dollar, 1News reported.
Retail Prices Breach $4 Threshold Across Regions
Pump prices varied significantly by location, with an Auckland station in New Lynn advertising 95 petrol at $4.11 a litre and 91 petrol at $3.89. Fuel monitoring service Gaspy recorded a national average of $3.80 a litre, marking an 11% increase over a 28-day period. Unleaded 91 reached a national average of $3.61 a litre, while diesel averaged $3.23. Automobile Association spokesperson Terry Collins noted that while only a handful of locations charged above $4, many others sat just under that psychological barrier. Gaspy data confirmed that 91 petrol broke the previous record high of a fraction over $3.50.
Divergence Between Crude and Refined Fuel Costs
Retail price increases occurred even as headline crude prices fell. The price of Dubai crude oil in New Zealand dollars dropped from $210 a barrel in mid-September to $192, according to Ministry of Business, Innovation and Employment data cited by RNZ. Infometrics chief forecaster Gareth Kiernan attributed the gap to rising importer costs driven by a divergence between crude prices and refined output prices. Westpac chief economist Kelly Eckhold explained that retail markets rely on Singapore Mogas—the wholesale equivalent of petrol—rather than Dubai crude directly, noting a typical two-to-three-week lag before wholesale shifts reach pump prices.
High Freight Costs and Weak Dollar Raise Fuel Prices
ANZ reported that exceptionally high freight costs combined with a weak New Zealand dollar to keep import costs elevated for local motorists. Statistics New Zealand’s Selected Price Indexes figures showed that in the year to September, petrol prices jumped 24.3% and diesel surged 55.8%. Card spending data reflected the financial strain, showing a 2.9% lift in fuel spending through September. Senior economist Miles Workman stated that crack spreads, exchange rates, and shipping expenses showed no sign of easing in the near term.
Outlook on Middle East Conflict and Future Inventory
Fuel price trajectories toward the end of the year depend heavily on developments in the Middle East. Workman warned that even a swift conflict resolution would require time to restore lost oil production and rebuild depleted global inventories, keeping price pressures elevated. Collins added that little relief was expected before Christmas, with high demand anticipated to maintain upward pressure on global energy markets.