New Zealand fuel prices jumped 13% in April amid Middle East crisis
Statistics New Zealand says fuel prices rose 13% in April, with diesel jumping nearly 37%. The main driver is the Middle East crisis, which has pushed up shipping and insurance costs.
Stats NZ's monthly inflation update shows petrol rose an average 11.4%, diesel 36.8% and jet fuel 28% in April. The surge is attributed to shipping disruption in the Strait of Hormuz and widening insurance premiums; food prices held steady.
Reserve Bank Deputy Governor Christian Hawkesby said in a sector note that 'headline inflation will be directly affected but the core outlook is unlikely to shift'. The Consumers' Association estimated the household impact at an average NZ$38 per week.
The government is working on a temporary fuel excise reduction through the Treasury. Logistics industry representatives say the petrol cost could lift freight rates by up to 5% in the second quarter and feed through to consumer prices before mid-year.
More from Australia-Pacific
Australia opposition leader Taylor vows to amend Sex Discrimination Act
Australian opposition leader Angus Taylor pledged to amend the Sex Discrimination Act after the Federal Court upheld the 'Tickle v Giggle' decision. The ruling found that excluding a transgender woman from a women-only app was discriminatory.
Kalgoorlie's 'shovel-ready' water project shut out of federal budget
The drought-proofing water project championed by Kalgoorlie, Australia's largest outback city, missed out on funding in this week's federal budget. The City of Kalgoorlie-Boulder said it will now review its ambitious 'Water Bank' plans. The decision has reopened debate over how the country prioritises rural infrastructure.
Former China hawk elected as Solomon Islands' new leader
Solomon Islands' parliament elected a former 'China hawk' as the country's new prime minister, a week after the pro-Beijing incumbent lost a vote of no confidence. The new leader said he will renegotiate the scope of the security pact signed with Beijing. Australia and the United States welcomed the result.