Rising Fuel Costs Trigger 30% Spending Jump and Shift in Kiwi Consumer Habits

New bank data reveals a massive jump in fuel spending for New Zealanders in March 2026, forcing a pullback in hospitality and grocery spending.

By: AXL Media

Published: Apr 3, 2026, 4:23 AM EDT

Source: RNZ

Fuel Costs Dominate Household Spending

The financial reality of the Middle East conflict was laid bare on Thursday with the release of March card spending data. Card spending at fuel stations jumped 29.8% over the month, a figure that chief economist Sharon Zollner suggests is almost entirely driven by price hikes rather than increased consumption. Despite the record-high costs, fuel volumes saw a marginal increase as farmers and rural workers filled tanks and storage containers to hedge against further price spikes or supply shortages.

Infometrics chief forecaster Gareth Kiernan noted that this "stocking up" phase is likely to be followed by a period of significant behavioral change. With fuel taking up a much larger portion of the weekly budget, many New Zealanders are already responding by reducing non-essential driving. This shift is reflected in a 14.2% rise in spending on public transport, as commuters seek cheaper alternatives to the high cost of operating personal vehicles.

The "Hospitality Hit" and Changing Consumption Patterns

The surge in fuel expenses has had an immediate "cannibalization" effect on other sectors of the economy. ANZ data indicates a consistent drop in spending across hospitality categories, including cafes, bars, restaurants, and fast-food outlets. For many households without a financial buffer, the necessity of filling a car for work or school commutes has directly reduced the "leftover" money typically spent on social outings and dining.

Consumer caution is also extending to the supermarket aisles and secondhand markets. Analysts observed a drop in grocery spending, suggesting that Kiwis are being more selective with their shopping lists to offset the energy crunch. Furthermore, a decline in secondhand shop spending may indicate that lower-income households—who are disproportionately affected by fuel price volatility—are tightening their belts more than any other demographic.