Forking out $3 per litre at the petrol pump for your regular 91 could be the new norm. For the next few years, anyway.
That’s according to the Automobile Association (AA), who warns Kiwis can expect to see petrol rise to nearly $4 per litre within a few years.
According to the Gaspy App, unleaded 91 has already crept back over the $3 a litre mark in and around central Auckland.
Rising prices led to the Government temporarily slashing fuel taxes in March. At the time, the Government blamed a “global energy crisis.”
Fingers were pointed at the Russia/Ukraine conflict, which continues to rage on and continues to strain the global fuel supply.
“This is a perfect storm we’re in, with the sanctions, the demand increasing, and the supply is static,” AA’s Terry Collins said.
“I see this $3 mark being here for quite some time now, I think it could almost be the new normal.”
Energy Minister Megan Woods told 1News fuel companies are remaining fair and not taking excessive profit cuts.
Woods insisted the problem is primarily on the global supply and the import price.
She suggested the fuel tax cut would likely extend beyond the initial three months to keep prices at the pump at a reasonable level.
However, Collins says increases in fuel price won’t impact Kiwi demand.
“People don’t have a lot of discretionary ability to change their behaviour and use less fuel just based on price.”
He says when prices rose by 10 per cent, demand changed by a meagre 1.5 per cent.
Ultimately, it means most Kiwis will have to bear the pain at the pump and make sacrifices elsewhere to afford the luxury of fuel.