Petrol prices expected to reach $3.50 per litre by Christmas

Kiwis may want to start rethinking their plans for a big summer roadie this holiday season as petrol prices have been tipped to reach up to $3.50 per litre for 91 octane by Christmas.

Both rising oil prices and a weak New Zealand dollar are said to be putting pressure on petrol prices, while the closure of Marsden Point Oil Refinery has also had a big impact.

The price for a barrel of Brent crude oil has steadily risen to its highest point over the past year, reaching $95 yesterday.

However, the flow-on effect from high oil prices has yet to take its toll on what you pay at the pump, meaning it’ll likely get worse for Kiwis in the coming months.

According to AA principal motoring affairs policy advisor Terry Collins, the average price for 91 octane is nearing an average of $3.12.

“I’d imagine it would be over $3.20 within about a fortnight and we could be by Christmas closer to $3.50 than $3,” he added.

The oil market is currently experiencing a supply deficit due to cuts from both Saudi Arabia and Russia, two of the largest oil producers in the world. Other members of the OPEC+ group are also said to be reducing output, which just means more pain at the pump for us.

New Zealanders were able to breathe a sigh of relief when the Government brought in a 25 cent fuel tax subsidy and half-price public transport fares in March 2022 to help alleviate the cost of living. However, these have now ended.