Filling the car has become the most painful part of the week for a lot of us.
New numbers out this week show just how hard the fuel shock is hitting New Zealand. They also show something interesting: Kiwis are quietly changing how and where they spend.
We are spending more on fuel, driving less, and that is good news for the shops and cafes just down the road.
New Zealand is one of the hardest hit in the world
RNZ reported on Thursday that New Zealanders face the fourth-highest increase in fuel costs in the world on a per capita basis, behind only the US, Canada and Australia.
Westpac chief economist Kelly Eckhold said it comes down to how much we rely on our cars. Plenty of us don't live in big cities with lots of public transport.
Gaspy data in the same story put the average price of 91 at $3.51 a litre on Thursday.
What it is doing to the household budget
Stats NZ's latest household living-costs figures show the cost of living for the average household rose 3.0 percent in the year to September.
Petrol was the main culprit. It rose 19.1 percent and made up almost a quarter of that increase. Power was up 9.3 percent and rates were up 6.2 percent.
Over the same year, Stats NZ's pump price data shows petrol up 24.3 percent and diesel up a whopping 55.8 percent.
There is a small silver lining. Interest payments for the average household fell around 10 percent over the year, which has softened the blow for people with a mortgage. But the Reserve Bank expects annual inflation to climb to 4.4 percent in the December quarter, largely because of fuel.
Spending more, driving less
This is the bit we find most interesting.
According to Eckhold, fuel spending is up 27 percent per person on a year ago, but the amount of fuel we are actually buying is down about 12 percent. Spending on public transport is up 18 percent since February.
"We're spending more, we're driving less," he told RNZ.
In other words, people are cutting the extra trips. The drive across town for brunch. The special run to the big shopping centre. The "while we're out" detour.
And the money going into the tank is money that would otherwise have gone on the nice-to-haves.
Why your closest cafe is suddenly your best deal
When every kilometre costs more, the cheapest treat is often the one you can walk, bike or bus to.
A $6 flat white across town can quietly become a $12 outing once you add the fuel. The same coffee at the spot around the corner is just a coffee.
Here is how to make that shift work for you:
- Find what's close first. Browse Perkie Discover or your region, like Auckland, Wellington or Christchurch. Our guide to finding local businesses in NZ has more tips.
- Get rewarded for being a regular. With Perkie Tracks, you collect digital hops on your Perkie Card every visit and unlock the reward that spot has set.
- Bundle your errands. One trip to your local strip of shops beats three separate drives. Grab the coffee while you are there.
- Book a quiet-time treat. Perkie Moments are off-peak slots with a member deal attached. They are perfect for a weekday catch-up near home.
- Make your receipts work. Upload an eligible NZ receipt with Perkie Spend to earn Perkie Points towards Moments and competitions.
For more ways to stretch the budget, see our best ways to save money in New Zealand.
For owners: your neighbourhood is your market right now
Fuel is hitting businesses from both sides. Bidfood's November foodservice market update warns that higher freight and fuel costs may flow through to the landed cost of imported ingredients, and suggests ordering key summer lines early before the Christmas rush.
But there is an upside. If locals are making fewer long trips, the people within walking distance of your door matter more than ever.
- Look after the people who live and work nearby. A simple loyalty Track rewards repeat visits without cutting your menu price. Our guide to loyalty programs for restaurants covers what works.
- Fill your quiet hours, not your busy ones. A Moment on a slow weekday afternoon gives locals a reason to pop in without giving away your Saturday rush.
- Be easy to find. When people search for what's close, you want to show up. A free Perkie listing is $0 forever, with no credit card and no special hardware.
- Plan for summer now. Pureprofile's Christmas report found Kiwis expect to spend an average of $456 on festive food and drink this year, up 11 percent on 2025. Make sure your regulars think of you first.
See how it all fits together on Perkie for businesses.
The bottom line
Fuel is eating into the weekly budget, and Kiwis are responding by driving less.
That makes the cafe, bakery or bar around the corner more valuable than ever, for your wallet and for the community.
Keen to find your new local and get a little something back? Head to Perkie Discover and join free.