Deepening Middle East crisis sends petrol prices soaring overnight as volatility continues

Petrol prices soared across parts of the country this morning. Photo / NZME

Petrol prices soared across the country this morning - one station hiking the price of 95 octane 19c - as the volatility in international oil markets continued overnight.

Premium 95 petrol surpassed $3 a litre at dozens of locations in Auckland and other major centres.

At BP New Lynn in Auckland, 95-grade petrol rose 15 cents to $3.27, according to Gaspy.

Waitomo Epsom increased the price of its 95 grade petrol by 19c a litre to $2.75.

Meanwhile, unleaded 91 sailed past $3 a litre at several Auckland petrol stations.

Brent crude oil eclipsed US$110 ($185) a barrel for the first time in three and a half years before dropping back under US$90.

Speaking on Ryan Bridge TODAY this morning, Waitomo chief executive Simon Parham said it was too soon to speculate how high prices at the pump could go.

“There’s a lot to play out within the market and over the coming weeks,” he said.

“As our Finance Minister Nicola Willis said, we haven’t got a supply problem. This is more of a pricing problem where there’s a whole lot of geopolitical risk priced into the market and so we’ve seen really short and sharp increases in prices.”

Despite the price of Brent crude coming off, Parham said Kiwis would not see a drop in retail prices.

“We price on a weekly basis and the main benchmark for New Zealand is the Singapore Platts price and that closed $20 a barrel higher last night.

“But that was obviously before the news about G7 and their readiness to participate if they reach a threshold.

“Those prices in Singapore would have to come down significantly to stop further price increases going into the market.”

The G7 group - an influential seven-nation forum that coordinates solutions to major global issues - said it was ready to ​take “necessary measures” to support the global supply of energy, including releasing stockpiles.

The G7 group said it continued to “closely monitor” developments in the energy markets.

Parham said Waitomo’s prices had gone up around 10-15 cents on petrol and 20-plus cents on diesel.

“We are really seeing diesel being impacted more than petrol at this stage because of the crude that comes out of the Middle East. It’s richer in diesel product than it is in petrol,” he said.

Parham said motorists should shop around.

“Look for the best deal. It may mean you have to change your shopping habits, but look for the best deal on the day and I think that’s how you can save some cents and some dollars in the short term,” he said.

This morning, Air New Zealand said it was suspending its earning guidance because of volatile jet fuel prices.

Jet fuel prices were about US$85 to US$90 per barrel before the conflict but had surged to US$150-US$200 in recent days.