Diesel prices may rise in New Zealand as Russia supply crunch bites

New Zealand's Automobile Association (AA) says fuel prices may be about as low as they are likely to get for a while, with an increase expected in the period ahead. RNZ reports that a global supply crunch tied to Russia is behind the forecast.

The association said the tightening supply chain could particularly affect diesel prices, with knock-on effects for costs in the transport and agriculture sectors. The AA is advising consumers to prepare for a near-term price increase.

New Zealand's economy is especially sensitive to swings in global energy markets, given the country's heavy reliance on imported fuel. Analysts are watching closely how international supply conditions develop in the coming weeks.