Pressure on fuel prices and impact on New Zealand

Z Energy, the Kiwi-owned fuel company supplying around one third of New Zealand’s total fuel, said developments in international oil markets were not affecting fuel supplies to New Zealand.

However, developments had caused a sharp increase in global prices which were impacting the price Z pays for fuel, but were not yet impacting Kiwi customers.

Z General Manager of Retail, Mark Forsyth, said the announcement of a potential European Union ban on oil imports from Iran and the possibility of disruptions to shipping through the Hormuz Strait had pushed up global crude oil and finished fuel prices during the week.

“We don’t envisage any short-term supply difficulties and Z is holding healthy stock levels to cover the holiday driving period.

“However, the price of a barrel of 91 octane petrol has increased by around US$7 per barrel since the end of 2011, which is roughly equivalent to around a six to seven cent per litre impact at the pump.

“Z has absorbed these higher costs in recognition that many families are currently driving home from their Christmas holidays and we will continue to hold retail prices over the coming weekend.”

Mark said Z was hoping for an easing of market conditions next week and would continue to evaluate prices on a daily basis.