Kiwi motorists are in for some painful few trips to the pump, unleaded 91 clocking over $3 per litre on Friday.
Several petrol stations in Auckland and Wellington opened the weekend with 91 advertised for above $3.
It’s not just central city locations facing the brunt of it all too. On Saturday, BP in Bombay had unleaded 91 going for $3.15 per litre.
BP and Z stations in Hamilton were also ticking a touch over $3 for a litre of 91 on Saturday. The most expensive 91 we could find in Christchurch via the Gaspy app was $2.91.
Discount retailers like Gull were also charging between $2.80 and $3.
The average increase over the last month for a litre of 91 is 40 cents in Auckland.
Last month, the price for a barrel of crude oil exceeded US$90 for the first time in eight years.
On Saturday, one barrel is selling for $110. American analysts forecast prices to continue surging, with $185 barrels not out of the question by the month’s end.
Russia, the world’s second-largest oil producer, is facing heavy sanctions on their product following their invasion of Ukraine. These sanctions have a knock-on effect that skyrockets prices.
On top of that, roughly 70 per cent of Russian oil cannot find a buyer, straining the global supply.
In an interview with NewsHub, AA policy adviser Terry Collins expects New Zealand’s fuel prices to continue rising over the next few weeks.
“Fuel prices are going to be more expensive next week than they are this week.”
Because oil is purchased in US dollars, the price at the pump reflects how strongly or poorly the NZ dollar is going against it.
There’s also government-imposed tax on every litre of fuel.
MTA energy and environment sector manager Ian Baggott told the NZ Herald 52 per cent of the price is made up of tax.
Production and import costs make up a further 37 per cent. The remaining 10 per cent is then retailer margin.
Auckland motorists pay an additional 10 cents per litre as part of a regional fuel tax.
As of December 2021, the tax had racked up $515 million. Data from the council suggests they have spent less than half of that.
Last month, prime minister Jacinda Ardern admitted fuel prices were too high. She said the government would not get in the way to worsen the situation.
For cheaper fuel prices, local experts say to use unmanned stations or fill up areas with lots of competition.
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