Price of fuel continues to edge up as oil hovers above US$100
Wednesday, 18 March 2026
The price of fuel, and in particular diesel, is continuing to edge up around the country as oil hovers above US$100.
Many service stations have now upped the sticker price of 91-octane petrol to $3.16 a litre and a growing number are now selling diesel at or above $2.90 a litre.
The price of Brent crude for May delivery was trading at US$103 a barrel shortly before 9am on Wednesday, little changed from a day before, as fears remained of protracted disruption to exports from the Gulf region.
The price of importing refined fuels from Asia remains much more elevated than the price of oil alone would dictate.
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The key benchmarks for refined fuel in Asia — as reported by the Australian Institute of Petroleum in its latest update — continue to suggest retail fuel prices in New Zealand of about $3.30 a litre for ‘91’ and $3 for diesel could be justified, assuming petrol companies maintained their pre-Iran-war margins.
The Ministry of Business, Innovation and Employment (MBIE) updated its public information on fuel stock levels today, showing there is slightly less petrol and diesel and slightly more jet fuel in the country and at on its way.
Finance Minister Nicola Willis, who is heading a ministerial advisory group on the fuel situation, said on Monday that the Government didn’t anticipate ordering any fuel conservation measures “until we were to see any actual disruption in ships being able to come to New Zealand”.
She indicated then that would be three or four weeks away, at the earliest.
It is not clear how much opportunity there might be to save up significant amounts of fuel, now, ahead of any actual supply crisis unfolding.
A spokesperson for MBIE said the minimum stockholding obligations set “a floor, not a target” and fuel importers did keep stock above the minimum for operational reasons and to “avoid the risk of non-compliance”.
But she noted fuel storage operated on a “draw‑down and replenishment cycle”, where storage tanks were drawn down to above the minimum level and then topped up regularly.
“Because fuel shipments are large, importers need sufficient spare capacity in tanks to safely receive incoming cargoes.
“Bringing in restrictions too early can disrupt normal operations and make it harder to keep fuel flowing to essential services when it really matters,” she said.
Greater Wellington Regional Council chairperson Daran Ponter confirmed he, with the chairpersons of Auckland Transport and Environment Canterbury, was writing to Willis and Transport Minister Chris Bishop on Wednesday, asking them to set aside fuel reserves for public transport.
This meant that, if pumps ran dry for motorists, public transport could keep running. He understood emergency services already had fuel reserved.
The letter would also ask the Government to promote the use of public transport during the rising fuel costs