Retail Sector Hit Hard as Fuel Crisis Drains Household Budgets

Retail New Zealand reports a "nose-dive" in apparel and discretionary spending as soaring petrol and diesel prices force Kiwis to prioritize essentials.

By: AXL Media

Published: Apr 18, 2026, 4:08 AM EDT

Source: RNZ Pacific

Surging Costs and Shifting Habits

Infometrics principal economist Brad Olsen confirmed that the current spike in fuel prices is the largest since data collection began in 2011. The impact is staggering:

Diesel Prices: Up 37% compared to last year.

Petrol and Electricity: Both up 13%.

Consumer Response: While New Zealanders spent $583 million on fuel in March 2026, this actually represents a decline in volume. In March 2024, Kiwis spent $591 million on fuel when prices were significantly lower ($2.80 for 91 unleaded vs. $2.98 today).

Retail New Zealand Chief Executive Carolyn Young noted that if fuel usage habits hadn't changed, the monthly spend would have exceeded $600 million. "These numbers show us that people are cutting back on their discretionary travel," she said.