Fuel monitors point to persistent geopolitical strains for the rising costs. The national average for 91 fuel broke previous highs set earlier in the year following military strikes in the Middle East, according to data from fuel price tracker Gaspy. Brent crude has hovered above US$100 a barrel through a sustained period, keeping supply pressures high.
Global Conflicts Push Pump Prices Up Across New Zealand
Pump prices for unleaded fuel have climbed to record highs across New Zealand, with the average cost of 91 hitting $3.60 a litre and diesel sitting at $3.23. The spike follows sustained Middle East conflict and a weak local currency, touching off a wider debate over who profits while drivers pay more.
Macquarie University energy expert Lurion De Mello noted that pricing pressures extend beyond the Strait of Hormuz to production levels out of Russia. Transport expenses compound the issue.
Currency Pressures Squeeze Household Budgets
New Zealand motorists face an additional economic hurdle beyond global crude costs: a soft domestic currency. ASB acting chief economist Kim Mundy told 1News that importing fuel becomes more expensive when the exchange rate falters.
When global energy prices are elevated and local currency values drop, the combined effect flows directly to service station forecourts. That pinch leaves households with less discretionary income after filling their tanks, squeezing daily budgets across Auckland, Wellington, Christchurch, and the rest of the motu.
Crude Producers and Refinery Owners Reap Windfall Profits
As consumers absorb record costs at service stations, energy analysts point to specific sectors capturing the financial upside. Energy expert and former Marsden Point refiner manager David Keat told Radio New Zealand that crude producers and refinery owners reap the largest gains during periods of soaring prices.
“Anybody who’s producing crude is doing very, very well in terms of windfall profit. They’re getting probably the biggest share. The second group would be anybody who has an oil refinery, they’re making extraordinary refining margins in this period.”
David Keat, Energy expert and former Marsden Point refiner manager
Keat added that the New Zealand government receives an honourable mention among beneficiaries because higher retail prices automatically lift the 15 percent Goods and Services Tax collected on each litre sold.
State-Backed Energy Giants Control International Supply Deals
While household names like Mobil, BP, and Shell maintain visible footprints on local forecourts, Keat noted they account for only about 12 percent of global crude production. The dominant financial beneficiaries are state-owned or state-affiliated national oil companies across OPEC nations, Russia, China, and other producer states.
International maneuvers to cool prices have met skepticism from industry observers. In response to global increases, United States President Donald Trump announced a diesel arrangement with Russia intended to supply 300,000 tons of fuel to American and global markets. Keat dismissed the move as smoke and mirrors
, calculating that even a projected three million tons would represent only a fraction of daily global demand.