New Zealand motorists enjoying slightly cheaper petrol prices this week may find the relief short-lived as global oil costs surge to four-year highs. Parts of the country have seen petrol drop below $3 per litre, with the average price of 91-octane fuel falling around 5% over the past 28 days to $3.24 per litre according to fuel price app Gaspy. Waitomo petrol group has reduced prices by about 40 cents per litre over the last two weeks, with the recent decreases attributed to both promotional discounts and genuine overall price reductions.

However, international oil markets are causing fresh concern following talks of military action and a double blockade in the Strait of Hormuz. The US blockade is preventing millions of barrels of oil exports from passing through the strategic waterway and could see Iranian oil production drop by around 1.5 million barrels per day. This supply disruption is driving prices higher globally, with investment bank Goldman Sachs forecasting oil to remain around US$90 per barrel through to the end of the year, translating to approximately NZ$152 per barrel.