Westpac data shows Kiwis still dining out despite soaring petrol bills
New Zealand households kept spending in September 2026 despite a fresh surge in fuel prices, according to Westpac's latest Retail Spending Pulse.
Per-person spending on Westpac-issued credit and debit cards rose 1.4% over the month and was 7.7% higher than a year earlier. Rising petrol costs explain part of that lift, but Westpac senior economist Satish Ranchhod (pictured) noted that "even excluding spending on fuel, spending levels have continued to climb".
Motorists pay more for less
The national average price of 91 unleaded reached $3.53 a litre in recent days, above the levels seen in the early stages of the Middle East war, Ranchhod noted.
Card spending on fuel rose 3.8% in September and was 28% higher than a year earlier, even as the volume of petrol bought fell. The bank estimates fuel volumes are down around 9% on last year, as "New Zealanders are driving less and filling up less often".
Higher fuel prices have also nudged spending elsewhere. Daily spending on public transport has climbed about 12% since the end of February 2026.
Essentials and dining both rise
Spending on essentials, where prices have risen sharply, is also absorbing more of household budgets. Over the past year, utilities spending rose 5% and insurance spending 7%, while grocery spending grew just 1.3%. Many households told Westpac they were buying fewer or cheaper items, even at the supermarket.
Westpac's analysis earlier this month found electricity prices rose 12% and health insurance premiums 19% over the past year. The bank expects the Reserve Bank (RBNZ) to lift the official cash rate (OCR) in December, peaking at 4% in 2027.
Discretionary categories have held up better than households' caution might suggest. Restaurant spending was up 16% on a year earlier and furnishings 15%, while travel spending has also held firm, with many New Zealanders choosing cheaper or lower-risk destinations.
"That points to resilience in spending appetites in the face of cost-of-living pressures and other headwinds," Ranchhod said.
Regions slow, but the gap remains
Spending growth eased in every region in September. Southland again recorded the strongest growth, while strong commodity export earnings are supporting confidence and spending in many rural areas.
Auckland and Wellington continue to lag most of the country, which the bank links to softer labour markets in both cities.
For advisers, the split matters. Rising fuel, power, and insurance bills are taking a growing share of household budgets, while weaker job markets in the two main centres could weigh on borrower confidence.
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