Petrol surges to highest level since June, 91 grade back up at $3.18 a litre

Petrol prices surged to their highest level since June as the Middle East conflict nears its seventh month of fighting.

The average price of unleaded 91 hit $3.18 a litre this morning, up 12 cents since last Friday and almost 35 cents higher in the past 28 days, according to fuel tracking app Gaspy.

It was last $3.15 a litre on June 16 before slowly dropping under $3 in early July.

Meanwhile, unleaded 95 has risen more than 36 cents on average in the past 28 days to $3.36 a litre.

Diesel is up 37 cents to $2.88.

Saudi Arabia was forced to temporarily close a critical oil pipeline this week after it was attacked by drones, the BBC reported.

The 1200km pipeline has helped Saudi Arabia bypass the Strait of Hormuz, where reduced levels of oil are flowing through.

“Refining spreads globally remain under pressure as producers scramble for oil supplies,” ASB senior economist Mark Smith said.

“Diesel stockpiles at Chinese SOE fuel suppliers [are] reportedly at 15-month lows and gasoline inventories at a post 2022 low.”

Ongoing conflict has seen Brent crude oil bounce back to around US$106 ($185.32) a barrel, having been as low as US$72 at the beginning of July.

Yesterday, Stats NZ said electronic card spending in retail industries fell 0.9% or $63 million in August, when compared with the previous month.

Spending on fuel rose $6.4m or 1.3% in August.

Westpac senior economist Satish Ranchhod said household finances were likely to come under renewed pressure over the next few months, pointing to tensions in the Middle East and mortgage rates pushing higher as examples.

“Spending growth is likely to pick up again next year as the jobs market eventually improves and inflation eases. However, the recovery is likely to remain gradual in the near term.”

Last week, 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.”

However, fuel supply into New Zealand remains secure, they said.

“We continue to have good visibility of supply and fuel shipments are arriving as planned.”