Source: Radio New Zealand
Figures show the cost of living crisis is not being felt equally across New Zealand. Quin Tauetau
Soaring petrol prices could be deepening the cost-of-living divide between urban and rural communities, with new data suggesting households in parts of rural New Zealand are spending nearly a quarter of their total discretionary spending on fuel and some regions seeing record petrol prices.
Figures and analysis provided to RNZ by Dot Loves Data showed that in April motorists in many rural districts spent as much as five times more of their household budgets on fuel than city dwellers.
In Hurunui, fuel accounted for 24 percent of all household spending in April, compared to 16 percent in December 2025, before the US-Iran war began. Local consumers in the Mackenzie district, Rangitikei and rural Waikato regions spent 23 percent on petrol and diesel (up from 18 percent, 19 percent and 21 percent respectively in December).
Other districts where drivers are feeling pain at the pump include Selwyn at 22 percent (up from 16 percent in December), Southland at 21 percent (up from 15), and Opotiki at 21.5 percent (up from 19).
By contrast Wellington households spent just 5 percent of their weekly budget on fuel in April, a jump of 1 percent from December.
The national media for April was 13 percent of total discretionary spending, compared to 10 percent in December.
Nelson sits at 8 percent (a 2 percent increase), and Dunedin and Queenstown at 9 percent (up 6 and 7 percent respectively). Auckland and Christchurch sit 11 percent and 10 percent respectively – up from 8 percent and 7.5 percent in December.
Dot Loves Data director Justin Lester said the findings showed fuel inflation was becoming “an increasingly unavoidable financial burden” for rural New Zealanders.
“Fuel isn’t discretionary spending in rural New Zealand. For many families, it’s the cost of getting to work, school, healthcare, and even the supermarket. Rural families are more exposed to the global fuel shock due to longer travel distances and heavy dependence on private vehicles.”
Dot Loves Data director Justin Lester. RNZ /Dom Thomas
People in larger cities had more alternatives, and these “insulated” them from the worst impacts of rising fuel prices, he added. “They can use public transport, travel shorter distances, or work closer to home.”
Rural communities did not have those options available to them. “It’s beginning to bite [and it] will begin to impact other sectors.”
The report also found grocery spending in urban centres averaged around 33 percent of household expenditure, compared with a national median of 41 percent, further highlighting the sharper affordability pressures outside the main centres.
Lester said prolonged international instability and higher fuel prices could continue to place significant strain on regional economies.
“When fuel prices rise, rural households have less flexibility in their budgets, and that pressure flows directly into local businesses and communities. These numbers show the cost of living crisis is not being felt equally across New Zealand.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand