Diesel reaches $3.90, oil back over US$100 a barrel on Hormuz impasse
Monday, 13 April 2026
The average price of diesel has edged up to $3.90 a litre on Monday, passing another milestone as hopes fade of an early end to the fuel crunch.
Price comparison site Gaspy reported that the average price of 91 octane petrol was holding steady at just over $3.48 a litre.
Oil prices had fallen after the United States and Iran agreed a ceasefire last week, but the collapse of peace talks and the US decision to impose a blockade on the Strait of Hormuz in an apparent attempt to prevent Iranian exports has sent oil back over US$100 a barrel.
Brent crude for June delivery was trading up 8% at just under US$103 a barrel shortly after 11am.
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ASB senior economist Chris Tennent-Brown said financial markets had got a boost last week from the ceasefire. “But hope can only go so far, and the weekend’s news shows that the situation remains fragile, at best, and can deteriorate rapidly.”
BusinessNZ chief executive Katherine Rich said the results of a survey of firms in the services sector, which dominate the economy, showed they were “clearly feeling the effects of the conflict in Iran”.
A reading below 50 points suggests the sector is contracting while a higher figure suggests it is expanding.
“The industries that deal mainly in discretionary spending — accommodation, cafes and restaurants, and cultural, recreational and personal services — have been especially impacted, and this is likely to reflect a lack of consumer confidence,” Rich said.
BNZ research head Stephen Toplis said the survey result was “so poor” that it suggested the economy could soon be contracting.