Petrol reaches $3.11 as global oil squeeze threatens further rises
September 16, 2026
Summarised by Centrist
New Zealand motorists face further fuel-price increases that could continue as conflicts disrupt oil production, refining and international shipping routes.
The average price of 91 octane has risen 15 cents during the past 28 days to $3.11 a litre. Diesel has increased by more than 14 cents to $2.79.
AA principal policy adviser Terry Collins said three events were tightening the global market. Saudi Arabia’s East-West oil pipeline is closed following drone strikes, the Strait of Hormuz remains shut and Ukraine is continuing to attack Russian refineries and diesel infrastructure.
Meanwhile, Houthi advances in Yemen have increased the threat to shipping through the Bab al-Mandab Strait, through which about 7% of global oil passes.
Collins said relief was unlikely before the United States midterm elections in November.
Crude oil was trading at about US$107 to US$108 a barrel. Further pump-price rises are expected because recent increases have not yet captured the full effects of the latest disruptions.
Collins said additional storage at Marsden Point meant the country faced a price problem rather than a supply problem.
Pump prices are being driven by crude-oil costs, refinery margins, shipping expenses and the weaker New Zealand dollar.
The same global squeeze is now reaching motor oil. Costco in the US has limited purchases of its Kirkland synthetic oil to two packs per customer each week after the price of 10 quarts rose from as little as US$30 to US$58. Reports suggest that refiners can currently earn more turning crude into petrol and diesel, further tightening lubricant supplies.
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