Source: ChildFund New Zealand
Rising global fuel prices are cutting household affordability across New Zealand, but new analysis shows families in the Pacific are being hit up to six times harder.
Fuel prices in New Zealand have increased by around 20 percent in recent weeks. This is reducing household purchasing power by an estimated 1 to 2 percent once flow-on costs are high fuel are factored in.
Across the Pacific, the situation is far more severe.
Fuel prices have risen between 20 and 40 percent in many Pacific nations, with some sectors experiencing even higher increases. Because Pacific households spend a larger share of their income on fuel and transport, the impact on affordability is significantly greater.
ChildFund New Zealand estimates the real loss in household purchasing power across the Pacific sits between 2.5 and 12 percent.
“Fuel is a base cost. When it rises, everything rises with it,” said Josie Pagani, CEO of ChildFund New Zealand.
“In New Zealand, families feel it at the pump. In the Pacific, families feel it on the table. Food, transport, and even access to clean water become harder to afford.”
Many families in the Pacific rely on imported goods and diesel-powered systems for transport and electricity, meaning fuel price shocks move quickly into the cost of essentials.
For families already living on tight budgets, even small increases in daily costs force difficult choices.
“This is where the impact really hurts. When food prices rise and transport becomes unaffordable, children are the first to feel it. Meals are skipped. School attendance drops. Access to safe water becomes less certain, increasing the chance of sickness or worse.”
“The two-week ceasefire is a welcome reprieve for children and families across the region. But this crisis has highlighted the urgent need for more long-term and enduring energy solutions in the Pacific,” says Josie Pagani.
