Z Energy warns of upward pressure on fuel prices
Friday 2 October 2026 · 2 outlets · 2 reports · updated In this story Z Energy
Z Energy says New Zealand's fuel supplies are secure through the end of the year, with stocks at their highest level since the US-Iran war. However, the company warns that global stockpile depletion and geopolitical developments could lead to higher petrol and diesel prices.
Key facts
4 facts
- New Zealand fuel stocks at end of September: 54 days petrol, 48 days diesel, 46 days aviation fuel
- Petrol demand fell about 6% and diesel demand fell 3-4% in the three months to September
- Commerce Commission found no sign of profiteering by fuel companies
- Diesel stocks in Europe are approximately 40% lower than previous levels
The full story
1 min read · 2 outlets
Z Energy chief executive Lindis Jones has warned that there is more upward than downward pressure on fuel prices. While local fuel supplies are considered secure through to the end of the year, the global supply chain is stressed. New Zealand's fuel stocks, including those in transit, reached nearly 54 days for petrol, 48 days for diesel, and 46 days for aviation fuel by the end of September.
Global inventories have declined, meaning future news could have a disproportionate impact on the market. Jones noted that if stocks continue to fall, product may be drawn to Europe, which would lead to higher prices in this region. Even if the conflict in the Middle East ended immediately, it could take well into next year or even the year after for the market to recover.
Consumer demand has decreased as a result of higher prices, with petrol consumption falling by approximately 6% and diesel demand dropping by 3% to 4% over the last three months. Jones suggested that the drop in demand over the last four to six weeks may be even higher.
Z Energy is absorbing some costs to remain competitive, resulting in lower margins than traditional levels. A Commerce Commission report found no evidence of profiteering, noting that gross margins on 91-octane fuel and diesel had actually decreased since the start of the Iran conflict.
Where reports differ
- One report states New Zealand has higher fuel stocks than at any time since the start of the US-Iran war, while the other describes them as being at the best level since the war started
Compiled from reports by The Post and RNZ.
