Key Takeaways

• The Automobile Association advises filling up fuel now due to expected price increases from renewed Middle Eastern conflicts.
• Fuel prices may rise more slowly than before due to alternate shipping routes, but waiting to fill up is not recommended.
• The government’s relief payment for low-income families will continue until 91 petrol prices remain under $3/litre for four consecutive weeks.

The Automobile Association (AA) has issued a timely warning for drivers to refuel their vehicles as ongoing conflict in the Middle East is anticipated to drive up petrol and diesel prices. AA fuel spokesperson Terry Collins emphasized that, while prices are expected to climb, the increase might be more gradual than during the conflict’s initial stages. This is largely due to the ability of more tankers to utilize alternate shipping routes.

Collins suggested that motorists should fill up as soon as possible if financially feasible, stating, “Last week was even better. This week is still good. Next week is going to be worse.” He cautioned that delaying refueling will likely lead to higher costs at the pump.

He also noted that some fuel companies had eliminated their typical Tuesday specials, indicating a forthcoming price increase. Collins explained that fuel arriving in New Zealand will see immediate price hikes, as importers aim to avoid financial losses from upcoming shipments. He illustrated this with an analogy: “If I’ve got $100,000 worth of fuel in my tank, and next week it’s going to cost me $120,000 to fill it up when it needs filling, I’m going to charge $120,000 for that fuel I’ve got in my tank now.”

While petrol prices are not expected to surpass $3/litre significantly, diesel may experience a more pronounced rise. Collins acknowledged that the government has been effective in managing the current fuel crisis, noting, “We don’t have a supply problem. We just have a price problem, and that’s a global thing.” He remarked on the challenges faced by a small nation like New Zealand, reliant on international developments.

Continuing its support for families grappling with rising fuel costs, the government is maintaining its weekly fuel relief payment. This aid will remain until the average price of 91 petrol stays below $3/litre for four straight weeks. In light of rising prices, timely refueling is crucial for consumers to avoid higher expenses.

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