Gull Petrol Stations Run Dry as NZ Fuel Prices Hit $3/Litre – RNZ

Several Gull petrol stations across New Zealand are experiencing fuel shortages for the second time in three days, coinciding with petrol prices exceeding $3 a litre in some regions. The disruptions are occurring against a backdrop of escalating geopolitical tensions in the Middle East, specifically impacting maritime traffic through the Strait of Hormuz, a critical artery for global oil supply.

The rising cost of fuel is directly linked to the conflict, prompting calls from US President Donald Trump for international naval support to secure the Strait of Hormuz, through which approximately 20% of the world’s oil – around 20 million barrels daily – typically passes. As reported by PBS, this situation represents a shift in Trump’s recent messaging, following previous boasts about low gas prices.

Gull Stations Hit Hardest

Gull, which operates 113 stations primarily in the North Island, confirmed it was experiencing high demand on Sunday. Reports from Auckland indicate that self-serve stations, such as the one on Rosebank Road, were dry as of Saturday night. A sign at the Rosebank East location also indicated a lack of fuel. Customers are reporting difficulty finding fuel at multiple Gull locations in West Auckland. Lloyd McInnes, a regular customer at the Rosebank Road station, expressed surprise at the outage, stating he had never encountered such a situation before.

The fuel shortages aren’t limited to Gull. The Tasman petrol station in Epsom was offering unleaded petrol at $2.72 on Saturday, but also displayed a sign prohibiting the use of petrol containers, suggesting supply constraints.

Supply Chain Pressures and Demand Surge

Gull attributes the shortages to a significant surge in demand, estimating a 15% increase, coupled with logistical challenges faced by its suppliers. The company maintains it has sufficient fuel reserves at its terminals and is working to expedite deliveries to its stations. “Gull has good levels of fuel at its terminal and is working as fast as practical with our logistics’ providers to get fuel to our sites to meet Gull’s customers increased demand,” a spokesperson told RNZ.

The Ministry of Business, Innovation and Enterprise (MBIE) reported a week ago that New Zealand currently holds a 52-day supply of petrol, diesel, and jet fuel. Even as this appears substantial, the localized shortages at Gull stations highlight vulnerabilities in the distribution network and the potential for rapid depletion in areas experiencing unusually high demand.

Broader Implications for New Zealand

The situation underscores New Zealand’s reliance on stable global oil supplies and the potential for geopolitical events to disrupt the fuel market. The Strait of Hormuz is a chokepoint, and any prolonged closure or significant restriction of traffic would inevitably lead to higher prices and potential shortages. New Zealand, as an import-dependent nation, is particularly vulnerable to such disruptions.

The impact extends beyond individual consumers. Businesses reliant on fuel for transportation and operations – including agriculture, logistics, and tourism – will face increased costs. This could translate to higher prices for goods and services, contributing to inflationary pressures. The current situation also raises concerns about the resilience of New Zealand’s fuel supply chain and the need for diversification of sources.

Trump’s Response and Geopolitical Context

US President Trump’s call for international naval intervention in the Strait of Hormuz reflects the escalating tensions in the region. CBS News reports that this move comes as Iran has been targeting ships and threatening financial institutions, as well as impacting U.S. Forces. Trump has also threatened further strikes on Iran’s Kharg Island, a key oil terminal, according to RNZ. These actions are increasing uncertainty in the oil market and contributing to price volatility.

What to Expect Next

The immediate focus will be on restoring fuel supplies to affected Gull stations. The company is working with its logistics providers to accelerate deliveries, but the timeframe for full recovery remains uncertain. Monitoring global developments in the Middle East will be crucial, as any escalation of conflict could further disrupt oil supplies and drive prices higher. Consumers should anticipate continued price volatility at the pump and consider adjusting their driving habits to conserve fuel. The New Zealand government will likely continue to assess the country’s fuel security and explore options for enhancing resilience in the face of external shocks.