New data from the country’s biggest bank highlights the real-world impact of rising fuel prices on New Zealanders, showing how households are being forced to adjust their spending as costs climb.
Card spending at fuel stations surged almost 30% in March, or 20.6% when seasonally adjusted. Chief economist Sharon Zollner said, using Ministry of Business, Innovation and Employment fuel price data, that almost all of the increase appeared to be driven by higher prices rather than increased fuel use.
“Fuel volumes actually went up a little bit despite the cost increase because there’s been lots of stories about people making sure that their car is full and farmers filling up their utes and whatnot, just in case.”
“That would have been offset by people probably driving less because the cost of driving has increased but that netted out to a small volume increase.”
Infometrics chief forecaster Gareth Kiernan said the behaviour pointed to understandable concern from consumers, with people stocking up amid fears fuel could become even more expensive or harder to access.
Spending on public transport rose 14.2%, suggesting more people are being pushed to seek alternatives as driving becomes more costly.
Meanwhile, spending at car and truck dealers climbed 14.8% as EV sales lifted sharply. There were 2,890 full battery electric vehicles registered last month, the highest figure since the end of the clean car discount and four times the number recorded in March last year.
However, the data also reveals the knock-on effects of rising fuel costs on everyday spending. Spending at fast food outlets, cafes, restaurants and bars declined during the month
Secondhand shop spending also fell, which Zollner said could reflect the growing pressure on lower-income households. She added there was also a decline in supermarket spending, suggesting families are becoming more cautious with grocery purchases as budgets tighten.
Overall, card spending rose 1.2% in March when seasonally adjusted and was up 6.2% compared to a year earlier, but the underlying data points to households increasingly having to prioritise essentials as rising fuel prices reshape spending behaviour.