Australians struggling with high fuel prices might feel some sympathy for New Zealand drivers, where the cost of regular unleaded petrol has surged to an average of NZ$3.32 ($2.76) per litre.
Some service stations in New Zealand are charging as much as NZ$3.49 ($2.90) per litre, with economists warning that prices could soon reach NZ$4 per litre. The country is also experiencing significant diesel shortages, prompting Nicola Willis to warn that thousands of jobs could be at risk if supplies run out.
In comparison, diesel in Australia is nearing $3 per litre in some regions, while the national average for unleaded remains around $2.20 per litre, according to the latest report from the Australian Institute of Petroleum.
Petrol prices in New Zealand are generally higher than in Australia due to steeper taxes, including a higher fuel excise, levies from the emissions trading scheme, and 15% GST.
Fuel costs have also been driven up by geopolitical tensions, with oil prices rising after Iran threatened to close the Strait of Hormuz indefinitely in response to former Donald Trump’s ultimatum demanding the reopening of the vital waterway.
Brent crude, the global benchmark, climbed 1.69% to about US$114.09 ($162) per barrel, while U.S. crude rose 2% to US$100.29 per barrel.
If these price trends continue, retail petrol costs are expected to climb even higher. Adding to the concern, global investment bank Goldman Sachs warned last week that elevated fuel prices could persist through next year.
