New Zealand vehicle users engage in panic buying as crude oil prices surge

Wellington — Vehicle users in New Zealand have flocked to petrol stations after crude oil prices surged beyond USD 100 per barrel owing to tensions in the Middle East, fearing sharp increases in domestic fuel prices.

Brent crude oil prices jumped 18 percent to USD 110 per barrel when trading resumed on Monday, 9 March, prompting vehicle owners to queue at petrol stations during the weekend to fill their tanks before prices rise further.

Waitomo Group, a New Zealand-owned fuel retailer known for low-cost fuel, reported a surge in demand of 15 to 20 percent last week as Singapore Platts, a key Asia-Pacific benchmark for refined oil products, rose approximately USD 60 per barrel.

This represents one of the largest surges the company has experienced in the past 25 years, according to Waitomo Group Chief Executive Simon Parham, in comments reported by Radio New Zealand.

There is no risk of supply shortages in New Zealand, with 20 days or more of supplies available and over 80 percent of supply avoiding the turbulent Strait of Hormuz, Parham added.