KiwiSaver Update - Why Your Balance Might Be Moving

Global (Oil & Geopolitics)
Oil prices have surged recently due to conflict in the Middle East, pushing global energy costs higher and creating uncertainty across markets.

NZ Fuel Prices (What’s Happening Locally)
We’re now seeing this flow through in New Zealand:

• Petrol is sitting roughly $3.40-$3.60 per litre depending on region

• Prices are up around 21% in the last month alone

• Earlier in 2026, petrol was closer to $2.70-$2.90 per litre

Even more significantly:

• Petrol prices rose 18.6% in one month (Feb to March)

• Diesel surged 42.6% in the same period
  This is the largest monthly increase on record (since 2011)

Inflation Pressure
Higher fuel costs flow into everything: transport, food, and everyday expenses.

This is a key reason inflation is proving harder to bring down.

Interest Rates
Because inflation remains elevated:

• The Reserve Bank of New Zealand is keeping interest rates relatively high

• Expectations of rate cuts have become less certain

Markets (More Volatile)
This combination (oil up, inflation up, rates up) is leading to:

• More short-term ups and downs in markets

• Increased volatility week to week

What this means for your KiwiSaver:

If you’re in a growth fund, you may notice your balance moving around more than usual right now.

That’s because these funds are heavily invested in global shares, which react quickly to these changes.

Key takeaway:

Oil rises → inflation rises → interest rates stay higher → markets become more volatile

This is a normal part of investing.

If you’re unsure whether you’re in the right fund, feel free to reach out.

Past performance is not an indicator of future returns.