Pain at the pump: Global oil prices increase as US-Iran tensions escalate
Escalating hostilities between the US and Iran have pushed global oil prices higher as Kiwi motorists continue to feel the pain at the pump.
The average petrol price for unleaded 91 is back over $3 a litre, touching $3.06 today, according to fuel tracking app Gaspy.
Brent crude oil was trading above US$107 ($184) a barrel overnight, having surged more than 12% over the past five days.
One motorist who went to fill up their car last night told the Herald there were queues of cars outside Gull and U-Go stations on Auckland’s Greville Rd.
“It was crazy… people trying to fill up before prices go up,” they said.
A spokesperson for Z Energy, which also owns U-Go, said it was actively monitoring the situation and working with supply partners to manage impacts wherever possible.
“Prices continue to fluctuate day to day, and we expect conditions to remain uncertain for some time.
“Global fuel markets have become more volatile in recent weeks following renewed tensions in the Middle East. This has increased the cost of importing fuel, particularly diesel, alongside higher freight costs and tighter regional supplies of refined fuel.”
The spokesperson said fuel supply into New Zealand remains secure.
“We continue to have good visibility of supply and fuel shipments are arriving as planned.”
International oil prices have risen again as tit-for-tat strikes between the US and Iran in recent days have resulted in oil facilities and tankers being struck.
Iran-backed Houthis seized control of Yemen’s Red Sea port city of Mocha and were advancing towards the strategic Bab al-Mandab strait, according to AFP.
The waterway, which links Asia to Europe via the Red Sea and Suez Canal, has gained importance as a transit route since the start of the wider Middle East war.
Petrol prices hit a four-year high in March this year when they broke past the $3 a litre mark on average for unleaded 91 for the first time since June 2022, according to Gaspy.
Prices rose to about $3.48 a litre by mid-April before settling below $3 again in late June.
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