Current Petrol Prices in NZ: Iran Conflict Drives Up Fuel Costs – Here's What the AA Recommends

If you've filled up recently, you've felt it in your back pocket: petrol prices in New Zealand are on the rise again. What many Kiwi motorists are noticing at the pump has a solid political reason behind it. The escalating conflict in the Middle East, and the related threats to shipping lanes in the Strait of Hormuz, are pushing global oil prices up – and we're not immune to it here.

Why filling up is costing you more right now

The Strait of Hormuz is one of the world's most critical waterways, handling about a fifth of all global oil trade. Recent military actions and statements from Tehran have thrown supply chains into uncertainty. The result? The price of crude oil has shot up in a matter of days. Even though the petrol we're using today was bought and refined weeks ago, importers eventually pass those higher costs onto us – it just takes a bit of time. So, it's not necessarily "price gouging," as some might mutter while paying, but simply the flow-on effect from international markets. We saw the first ripple effects back in late February, and it's likely not the last.

Heading towards $3 a litre?

The big question on everyone's mind is: how high will NZ petrol prices go? Experts from the Motor Industry Association suggest we could soon see the $3 per litre mark again. Roland Bilang, an industry commentator, warns that prices are likely to keep climbing in the coming days and weeks. The last time we saw levels like this was during the energy crisis following the Ukraine war, when prices briefly topped $3.20. Then, as now, geopolitical instability means oil companies are laughing all the way to the bank – and motorists are left footing the bill. The Commerce Commission can really only watch from the sidelines, as they lack the legal power to step in on what some see as "opportunistic" price spikes, as was highlighted in a recent report. Energy economist Nicolas Pages isn't optimistic either: "Uncertainty is the main driver of prices right now – and the markets are reacting like a Frankenstein's monster, difficult to control."

The AA as your guide through the price chaos

But it's not all doom and gloom. The AA - Automobile Association offers a great tool with its petrol price app, perfect for hunting down a bargain. Because one thing's for sure: price comparison sites regularly show that the differences can be huge. Pulling into the first service station you see, especially on a main route, is a sure way to pay top dollar. But if you're willing to look around, you can make real savings. Here are a few strategies to beat the pump:

• Skip the motorway services: Petrol stations along state highways and main routes are almost always the priciest. Prices there can easily top $3, while the station just a few minutes away in town is noticeably cheaper.
• Use a comparison app: Whether it's the AA's app or services like Cheap Fuel Prices — Fillzz – a quick glance at your phone before heading out can save you a decent amount. It's particularly worthwhile if you live near a regional centre or an area with lots of stations.
• Check regional differences: AA analysis has shown that you often pay less for 91 and 95 in places like Southland or the Manawatū. It tends to be pricier in areas with less competition, like some parts of the Coromandel or central Otago. And if you're really keen on saving, filling up just before a long weekend, rather than during, can make a difference.
• Don't be surprised by local price variations: Pricing strategies can be a bit of a mystery. While some chains are quick to pass on increases, others operate with more local autonomy, meaning prices can vary from one town to the next even under the same brand.

A look at the latest figures

To put this in perspective: back in early February, the average price for a litre of 91 was around $2.65. Those days are gone for now. Many stations, including those at supermarkets, have already pushed prices past $2.80. And it's likely to keep climbing. I'd wager we'll see that $3 mark pop up in many places over the next couple of weeks. The situation is fluid, and hopes for a quick resolution to the conflict have sadly faded. Uncertainty remains the biggest factor driving up costs.

So, keep your eyes open, compare those prices – you might just find a station that hasn't hiked theirs yet. In times like these, filling up the car becomes a bit of a strategic game.