Fuel is critically important to any economy, given it literally powers and enables the movement of goods and people, supports production, and underpins supply chains. A stable, secure, and affordable fuel supply helps maintain economic stability, and so knowing where fuel is sourced from better informs security of supply and the importance of strong trading relationships. Read

As has been the case across other areas of the economy, the transport industry showed some re-emergence of cost pressures in the March 2025 quarter. Repairs and maintenance costs jumped 4. 8% over the quarter to be 14% higher than a year ago, which was the fastest rate of increase since 2022. A 1. Read

Operating costs for transport companies were broadly lower in the final quarter of 2024, continuing a trend of moderating cost pressures throughout last year. Read

Diesel prices drifted downwards throughout much of 2024, by September reaching their lowest level since Russia invaded Ukraine in early 2022. But the relief for transport operators has been short-lived, with a renewed lift of almost 30c/L since early October. Read

Cost pressures for the road transport industry were mixed in the September quarter. Interest costs eased 2. 1% to be down 4. 5% from a year ago, representing the first annual decline since 2021, as the Reserve Bank cut the official cash rate for the first time since 2020. Read

Cost pressures for the road transport industry mostly continued to weaken in the June quarter. The most upward pressure was evident for repairs and maintenance costs, which rose 1. 6% from the previous quarter to be up 7. 3% from a year ago. Read

Cost pressures continued to ease for the transport sector in the March 2024 quarter. Diesel prices were 3. 5% lower than in the December 2023 quarter, while finance costs edged lower for the second consecutive quarter. Read

Electric vehicle (EV) uptake in New Zealand has been accelerating over the last few years. Uptake was helped along with financial incentives including the Clean Car Discount scheme and the exemption of EVs from paying road user charges (RUC). With the discount scheme gone and EV owners about to start paying RUC, the trajectory is likely to change. Read

Global diesel prices have surged significantly over the last few months. Driven largely by supply constraints, our Chart of the Month shows how this surge has led to a significant import cost premium over petrol. Elevated diesel prices will have ripple effects throughout both the global and local economies, and risk inflation remaining higher for longer. Read

A constrained global supply of diesel has led to a substantial increase in prices over the last few months, both for importers, and at the pump. Higher diesel costs threaten to intensify inflationary pressures, with geopolitical concerns adding further upside risk. In this article, we outline the issues facing the current diesel market, and the outlook over the remainder of 2023 and into 2024. Read