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Summarised by Centrist
Any short-term relief at the pump may not last, with oil prices rising again as the Iran war and Strait of Hormuz disruption continue to squeeze global supply.
Some petrol prices have dipped below $3 a litre this week, but the national average for 91 was still $3.24, down about 5% over 28 days.
Waitomo chief executive Simon Parham said prices had “come off over the last couple of weeks,” with the company cutting about 40 cents a litre on petrol.
However, Kepler senior oil analyst Naveen Das said a US blockade was stopping millions of barrels of oil exports from moving through the Strait of Hormuz and could cut Iranian output by around 1.5 million barrels a day.
“That removal of even more supply is what’s pushing the prices higher,” Das said.
Auckland University economist Robert MacCulloch said Goldman Sachs was forecasting oil around US$90 a barrel through to the end of the year, warning even a sudden end to the blockade would take time to unwind.
The pressure is already hitting households. One motorist told 1News a full tank now costs about $170, up from $140, saying: “It’s taking food out of people’s mouths.”
Pressure is mounting on the government to release its fuel priority list. Energy security expert Nathan Surendren said the public needs certainty about who would be prioritised if the country moves into Phase 3 of the National Fuel Plan. “We need certainty around this… people need to plan,” he said.
New Zealand remains at Phase 1, with officials saying fuel supplies are sufficient and orders are confirmed until mid-June. But Surendren accused the government of being “far too relaxed” and “foot-dragging,” saying it appears reluctant to signal the scale of the crisis.
