New Zealand businesses face fuel cost shock and cautious optimism

New Zealand’s fuel supply remains stable, with around 49 days of petrol and 48 days of diesel in stock, but prices are surging. A recent Employers and Manufacturers Association survey of over 150 firms found that 73 % have seen rising input costs beyond fuel, 58 % plan to raise their own prices, and roughly one‑third expect overall cost increases of 20 % or more in the next year. Nearly nine‑in‑ten business owners anticipate reduced activity, and 83 % report heightened stress.

Domestic economic data show modest growth, with GDP up 0.8 % in the March quarter and annual growth at 1.5 %. However, the conflict in the Middle East is adding uncertainty by pushing import costs higher. Kiwibank’s commercial banking head, Greg Byrne, describes the mood among clients as “cautious optimism,” noting that while construction may rebound when confidence returns, hospitality and retail remain under pressure.