New Zealanders are being urged not to panic buy fuel as motorists worry about rising prices.
Meanwhile, Finance Minister Nicola Willis stands by her government's decision to stop the electric car rebate scheme, as she looks at how the government could respond to rising prices.
Petrol stations across the country are seeing a surge of drivers filling up as petrol prices rise.
Petrol price monitoring app Gaspy says the average price of 91 petrol is now above $3 and has risen 20% since the start of the month.
Spokesperson Mike Newton said the average national price at the start of March was about $2.50 per litre.
He said it had been rising quickly.
The rise in prices was largely due to the conflict in the Middle East.
US President Donald Trump is calling for countries to send ships to secure the Strait of Hormuz, which is effectively closed as Iran launches attacks to halt maritime traffic.
The area is critical because around 20% of the world's oil consumption or 20 million barrels a day, usually passes through it.
It's resulted in several petrol stations running dry here over the weekend.
Newton said most of the petrol stations running low on gas seemed to be Gull.
"It's not a supply problem, they have plenty of fuel in the tanks. It's just they have to get it into the tankers and get it to the stations. Hopefully we'll start to see that be alleviated in the next couple of days."
He said the average price was now just 6c away from the level it reached when the Government cut the fuel excise tax, after the Russian invasion of Ukraine.
"We're starting to get into that territory and this government has said they're less interested in doing that... so it'll be interesting to see when the pressure starts to build."
Finance Minister Nicola Willis told Morning Report the government was carefully monitoring fuel stock levels.
New Zealand has around 32 days' worth of fuel in the country and 25 days in ships on the way to the country.
"There is no current issue with the availability of fuel," Willis said. "Were that to be the case, we would get very good forewarning because we would be aware of fuel companies reporting to us that orders had been disrupted or cancelled. They have not made any reports of that sort to us at this stage.
If we got that warning, Willis said we would have several weeks to plan for it.
"This is why we have these minimum stock holdings in the country, so we don't get ourselves into a panic situation."
She said the government hasn't needed to review its sanctions on Russian-origin oil.
"This is, obviously, an event that is unfolding; if there are changes in that position, we will review them when they occur."
As the US and Isreal war with Iran continues, Finance Minister Nicola Willis described what a worst case scenario would be for New Zealand if the conflict dragged on and what the Government's plans were. (Source: Q and A)
Waitomo chief executive Simon Parham said demand at the company's petrol station has increased by about 15%.
"We've had the odd run out from here and there, but it's really been for a maximum of 30 minutes," he told Morning Report.
"What we are seeing is that increase in demand, coupled with a very stressed driver system, anything from a delay at the terminal to a truck breaking down, it's just caused that slight delay in he system, so you have a slight run out.
"There's nothing to worry about."
He expects to see the demand soften.
"We're still in good shape... There's no need to panic. Yes, we are suffering from high prices, which is tough on everyone, but there is no need to panic at the moment."
He said if the cargo orders can't be placed, that's when New Zealand may need to look at managing stock.
"If we are staying around that 50-day mark, that's a rolling 50 days, then we're fine. If we start to see that drop back, then that's when we have to manage stock," Parham said.
Market uncertainty from the tit-for-tat in international trade is bringing the price down on filling up the car. (Source: 1News)
Westpac chief economist Kelly Eckhold said next month will be very difficult if things don't improve.
"The refiners in Asia are going to run out of feed stocks to be able to continue to produce at the levels we are used to," he said.
"I think if we are sitting here in mid-April and things haven't improved, I think we will be looking at the possibility that everybody is just going to have to rein things in a bit."
Brent crude has been sitting around US$100 a barrel, but if it reaches US$150 a barrel, Eckhold said that's when the real damaging impacts on businesses and consumers would be seen.
Willis has shut down suggestions of temporarily cutting the fuel excise tax, as the Labour government previously did in response to the Russia-Ukraine war, saying it was too broad.
She said she was closely looking at the cost of living impacts the rise in fuel prices has on lower-income working New Zealanders.
"When the petrol prices go up this much, that has an effect on the cost of living, particularly for working New Zealanders who use their cars to get to work. We are very conscious of that and are considering whether a government response is warranted," Willis said.
Willis stands by her government's decision to remove the electric vehicle rebate.
She said the rebate was very untargeted.
"I simply don't accept the idea that giving subsudies to millionaires in Remuara would help those afflicted by high petrol prices," Willis said.
She said if the government were to give support, it would be targeted, temporary and timely.
Willis said she has not taken advice to Cabinet yet on these matters.
The owner of a bus company said more people could opt for public transport over private vehicles.
Kiwi Coaches owner Dayton Howie told Morning Report petrol price rises were cutting into margins.
He said the costs were currently being absorbed, but it was unclear how long that could last.
Howie said students could miss out on school trips if fuel prices keep going up.
The morning's headlines in 90 seconds, including the petrol stations with no petrol, and why Benjamin Netanyahu’s been forced to deny he’s dead. (Source: 1News)
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