'Prices will be going up': NZ fuel costs set to rise next week

The Automobile Association is warning Kiwi motorists that escalating tension in the Middle East could see a surge in prices at the pump. 

The US launched another round of fresh strikes against Iran today, with Iran also threatening further trade blockades. 

New Zealand drivers have been enjoying some relief recently, as prices drop below $3 per litre of 91 in most places, but AA fuel spokesperson Terry Collins said it’s set to change. 

“Last week we had a good run of prices, but we’ve hit the bottom of the trough, and that trough is gone.”

“It won’t be anything like the original conflict, but it will be up and down for the next few months,” he said. 

Collins predicts 91-octane will shift closer to $3 per litre, and diesel will likely climb closer to $2.50 per litre rather than its previous $2 mark.

He says oil companies operate on a strict replacement policy, which directly affects what motorists pay. He noted that the exact timing depends on when shipments arrive. 

But despite the looming hikes, Collins stressed that New Zealand does not face a fuel shortage.

"There's not a petrol or diesel supply problem," Collins added. "We've got plenty of fuel, there's no need to panic buy".

Fuel stocks were ‘above minimum requirement’ in the latest Ministry for Business, Innovation and Employment update, on July 12th. It also said ‘regular shipments continuing to arrive as expected’.

A fuel relief package, announced by the government in March, will remain in place until it drops below $3 per litre for four consecutive weeks.