The New Zealand dollar is trading at a nearly two-year low, meaning New Zealanders can expect more pain at the petrol pump.
Falling to around 55.5 US cents to the NZ dollar, this rate has not been seen since October 2022.
The falling rate means imported goods - including fuel - will cost more, but it's good news for exporters, who will see higher returns.
AA fuel price spokesperson Terry Collins told Morning Report if people thought prices for petrol now were bad, the prices at the pump now are from oil bought over a month ago so it will only get worse.
"It's gone up $10 a litre...and those contracts were forward contracts so we're yet to see those prices come through, so we'll be seeing more prices going up."
He could see prices go up at least another cents up at the pump.
The cause is mainly geo-political, he said.
Beef and Lamb Alliance Group global sales director James McWilliam said it was positive news for exporters after two very long and challenging years for the industry.
"What this means for the industry is the red meat sector returns about nine to 10 billion (dollars) to the New Zealand economy on an annualised basis and about 90-95 percent of that is exported."
The US was one of the largest the New Zealand market traded into, he said.
Hospitality New Zealand spokesperson Sam MacKinnon said bars, cafes and restaurants rely on a strong domestic market.
The latest data from payments company, Worldline, shows hospitality sector spending fell 2.7 percent in 2024.
-RNZ
5 comments
Lucky taxes are so high
Posted on 14-01-2025 10:45 | By an_alias
Yep a floating tax rate the govt takes close to 50% of the petrol price.
We still have a World War 2 tax on there, any tax cuts you might have had are gone.
Also please ignore the hidden tax created by govt over spending, its called inflation.
Hmmm
Posted on 14-01-2025 13:33 | By Let's get real
The failure of the previous government to support Marsden Point refinery is, and has been for a while, impacting significantly on the lives of hardworking people around the country. Moreover, it is impacting their support base of low income families to a far greater degree.
You might only consider fuel prices in terms of your own vehicle, but it is far wider reaching. Just about every industry, farm, and commercial interest relies heavily on fuel for their livelihood and One government action has made that harder for the whole community.
The last government has driven the country backwards and deeper into third world existence, rather than first world progression. Just look at the migration figures to see what public opinion is really like.
Marsden Point
Posted on 14-01-2025 13:56 | By Saul
If only it was still running!
NZ labour yet again :(
The exporters will cheer for now
Posted on 14-01-2025 16:19 | By Paul W2
This low level of our dollar was the same as i remember back in mid 90s. The exporters all cheered saying wonderful until the imported costs hit them and then they like the rest of us complained. Just watch the prices of everything go up except wages.
$10/L?
Posted on 14-01-2025 17:15 | By Blasta
worse.
"It's gone up $10 a litre...and“
Really?
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