Summary: Petrol prices are nearing record highs, and Kiwi households and business are starting to feel the pinch. Because our economy and transport sector is so reliant on oil, there are massive negative impacts every time the price spikes – in fact one analysis suggests that we go into a recession every time petrol goes over $1.80 a litre. We can expect ongoing price spikes in the future, as the world’s reserves of cheap oil are dwindling and political instability in oil producing nations threatens supply on the world market. I spoke to Green MPs Gareth Hughes and Kevin Hague about the significance of high oil prices to New Zealand.
