Rural consumers spending as much as a quarter of household budget on fuel – report

Dot Loves Data director Justin Lester said the findings showed fuel inflation was becoming “an increasingly unavoidable financial burden” for rural New Zealanders. Photo / Duncan Brown

By Rachel Helyer Donaldson of RNZ

Soaring petrol prices could be deepening the cost-of-living divide between urban and rural communities, with new data suggesting households in parts of rural New Zealand are spending nearly a quarter of their total discretionary spending on fuel, and in some regions petrol prices are at record levels.

Figures and analysis provided to RNZ by Dot Loves Data showed that in April, motorists in many rural districts spent as much as five times more of their household budgets on fuel than city dwellers.

In Hurunui, fuel accounted for 24% of all household spending in April, compared to 16% in December 2025, before the US-Iran war began.

Local consumers in the Mackenzie district, Rangitīkei and rural Waikato regions spent 23% on petrol and diesel (up from 18%, 19% and 21% respectively in December).

Other districts where drivers are feeling pain at the pump include Selwyn at 22% (up from 16% in December), Southland at 21% (up from 15) and Ōpōtiki at 21.5% (up from 19).

By contrast, Wellington households spent just 5% of their weekly budget on fuel in April, a jump of 1% from December.

The national media for April was 13% of total discretionary spending, compared to 10% in December.

Nelson sits at 8% (a 2% increase), and Dunedin and Queenstown at 9% (up 6% and 7% respectively).

Auckland and Christchurch sit 11% and 10% respectively – up from 8% and 7.5% in December.

Dot Loves Data director Justin Lester said the findings showed fuel inflation was becoming “an increasingly unavoidable financial burden” for rural New Zealanders.

“Fuel isn’t discretionary spending in rural New Zealand,” he said.

“For many families, it’s the cost of getting to work, school, healthcare and even the supermarket.

“Rural families are more exposed to the global fuel shock due to longer travel distances and heavy dependence on private vehicles.”

People in larger cities had more alternatives, and these “insulated” them from the worst impacts of rising fuel prices, he added.

“They can use public transport, travel shorter distances, or work closer to home.”

Rural communities did not have those options available to them.

“It’s beginning to bite [and it] will begin to impact other sectors.”

Dot Loves Data director Justin Lester. Photo / RNZ, Dom Thomas

The report also found grocery spending in urban centres averaged around 33% of household expenditure, compared with a national median of 41%, further highlighting the sharper affordability pressures outside the main centres.

Lester said prolonged international instability and higher fuel prices could continue to place significant strain on regional economies.

“When fuel prices rise, rural households have less flexibility in their budgets, and that pressure flows directly into local businesses and communities.

“These numbers show the cost-of-living crisis is not being felt equally across New Zealand.”

– RNZ