New Zealand Petrol Prices Hit Record Highs Amid Global Conflict

Petrol prices in New Zealand have reached their highest level since the start of the Iran-US war, with 91 unleaded averaging $3.506 per litre. This peak surpasses the previous high of $3.502 recorded in April. The surge is driven by Brent crude remaining above US$100 a barrel and a 7 percent decline in the New Zealand dollar since August.

Global supply disruptions contributing to the price hike include the closure of the Strait of Hormuz by Iran, attacks on oil shipments in the Red Sea by Yemeni allies, and Ukrainian strikes on Russian refineries, combined with increased demand from China.

In response, the Labour Party announced that its proposed price-gouging law will apply to fuel companies. The party cited a Commerce Commission report indicating that fuel companies pass on 70 to 80% of cost increases within the first week, while passing on only about 30% of cost decreases.