Fuel still flowing, but motorists pay $25 more per fill

Summarised by Centrist

Petrol and diesel have jumped about 50c a litre in less than a month, adding roughly $25 to a 50-litre fill as overseas refining and shipping costs put more pressure on household budgets.

Suppliers say fuel shipments remain secure. The problem is the price New Zealand must pay to keep importing it, with no clear end to the pressure.

“The current pressure is on the cost of importing fuel rather than the availability of fuel itself,” a Z spokesperson told Stuff.

Gaspy figures reported on September 24 showed 91 petrol averaging $3.37 a litre and diesel $3.11. While 91 reached $4.15 on Waiheke Island, AA principal policy adviser Terry Collins described that price as an “outlier”, reflecting the island’s higher freight costs.

Collins said Middle East disruption was restricting oil supply, increasing tanker costs and putting pressure on refineries. Some tanker insurance and shipping rates had risen by hundreds of percent.

“The two major factors are the high shipping costs and the high cracking spreads that the refineries are doing,” he said. Cracking spreads are the difference between crude oil costs and the prices refineries receive for finished fuels.

Since Marsden Point stopped refining in 2022, New Zealand has relied entirely on imported refined petroleum products, mainly from Asian suppliers.

Collins remained confident fuel would reach New Zealand: “We’re a wealthy country, we can afford to pay for it, so we will get it.”

For motorists, that assurance of supply still comes with a growing bill.

Read more at Stuff

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