NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Airlines

Oil price rises put pressure on at the pump around New Zealand

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
28 Dec, 2017 05:42 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Restricted oil production during the last year has pushed up prices. Photo / Supplied

Restricted oil production during the last year has pushed up prices. Photo / Supplied

Global oil prices have hit their highest levels since 2015 this week as global supply is squeezed by pipeline problems and major producers are set to keep a check on production, pushing up prices for motorists this summer.

The impact of action by the Organisation of Petroleum Exporting (Opec) countries and non-Opec countries to keep up prices by limiting output is being felt around the world.

Petrol prices are over $2 for a litre of 91 unleaded petrol at many service stations around the country after rising steadily during the year.

Crude spiked earlier this week as Britain's most important North Sea pipeline prepared to restart pumping after a rare shutdown and there were supply problems in Libya following an explosion.

International benchmark Brent crude rose US$1.81, (NZ$2.56) or 2.8 per cent, to US$67.06 and US West Texas Intermediate crude futures jumped US$1.50, or 2.6 per cent, to US$59.97.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Prices have slipped slightly since then but analysts warn supply remains tight.

The Waha Oil pipeline that carries crude to Libya's largest terminal will need about a week for repairs following an explosion on Tuesday, while the American Petroleum Institute report shows US crude stockpiles falling by 5.96 million barrels last week.

In this country the Government wants to know more about how petrol companies set prices and the Automobile Association says the fuel companies should be absorbing more of the oil price increase as margins were already high.

Advertisement
Advertise with NZME.

The latest AA Petrol watch monitor puts the national price of a litre of 91 at $2.10, a litre of 95 at $2.19 and $1.44 for a litre of diesel.

Spokesman Mark Stockdale said motorists were paying less than $2 a litre for 91 octane a year ago including some of the more expensive parts of the country including Wellington and the South Island.

''Motorists over this holiday season have not had the same welcome Christmas present that they had over the past couple of holiday seasons.''

Brent crude fell to below $28 a barrel in early 2016 but has steadily recovered as Opec, which controls about 40 per cent of world production, and Russia agreed to slash production.

Discover more

Energy

NZ oil industry dealt a blow as Texan quits

28 Nov 04:01 PM
Airlines

What airlines make out of each passenger

06 Dec 05:57 AM
Business

Fuel shortage: Petrol stations running out of gas

24 Dec 01:25 AM
Commodities

Pumping oil price may come at a cost

24 Dec 02:56 AM

Price rises have not only hit motorists and ground transport operators, but also had an impact on airlines. The price of jet fuel is 20 per cent higher than what it was a year ago and this will add an estimated US$28.3 billion to airlines' bills this year.

Stockdale said any increase in crude price wasn't welcome.

''There are global factors that are beyond the control of Kiwi motorists, beyond the control of the New Zealand Government and beyond the control of the fuel companies. We're at the mercy of what happens in the rest of the world and if there's any comfort motorists are at the mercy of what's happening just as we are.''

But oil companies — which faced a price inquiry this year and will face more scrutiny next year — had room to avoid reacting to every rise in crude prices.

''Regardless of the commodity price and the exchange rate margins certainly are healthy at the moment, the AA's view is that there is room to absorb any increases in the cost of importing fuel so we think they can afford to wear a little more of that rather than passing it all on,'' said Stockdale.

The New Zealand dollar is at two-month highs against the US currency — trading above US70c today — and this would provide some insulation from petrol price rises.

Advertisement
Advertise with NZME.

And analysts say that if oil continues to rally in the coming year this will bring more of the US shale oil industry back into play and that will pull down oil prices.

Auckland motorists face higher fuel bills next year regardless of global prices as a public transport tax is imposed throughout the region.

Petrol price snapshot

Prices for a litre of 91 octane today:

• BP Kaitaia - $2.13
• Mobil Mairangi Bay - $2.02
• Gull Avondale - $1.99
• BP New Lynn - $2.029
• Caltex Otara - $2.01
• Z Whitiora, Hamilton - $2.069
• Z Tauhara, Taupo - $2.10
• Z Courtenay St, New Plymouth - $1.95
• Caltex Gladstone Rd, Gisborne - $2.02
• Mobil Kilbirnie, Wellington - $2.069
• BP Brooklyn, Wellington - $2.099
• Mobil Tahunanui, Nelson - $2.109
• BP Hokitika - $2.14
• BP Russley, Christchurch - $2.109
• Mobil Cumberland St, Dunedin - $2.109
• BP Frankton, Queenstown - $2.179
• Caltex Tay St, Invercargill - $2.109

Save

    Share this article

Latest from Airlines

Airlines

'Toxic management': Air traffic strike causes mass flight cancellations

04 Jul 03:41 AM
Airlines

Pacific airlines team up, four countries sign new trade and food deal

04 Jul 01:13 AM
Premium
Business|economy

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from Airlines

'Toxic management': Air traffic strike causes mass flight cancellations

'Toxic management': Air traffic strike causes mass flight cancellations

04 Jul 03:41 AM

Ryanair cancels 170 flights as French workers' strike affects about 300,000 passengers.

Pacific airlines team up, four countries sign new trade and food deal

Pacific airlines team up, four countries sign new trade and food deal

04 Jul 01:13 AM
Premium
18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM
Qantas cyberattack: Airline says scammers active but systems secure

Qantas cyberattack: Airline says scammers active but systems secure

03 Jul 09:31 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP