Spending on fuel rose in March, but it sucked the retail impulse out of apparel and hospitality, and we used credit cards to do most of that spending

Pain at the pump is clear to all motorists who have to purchase petrol or diesel.

Today's Statistics NZ price tracking shows sudden jumps for the price of petrol (+19%) and diesel (+43%).

At the same time, StatsNZ released its March retail sales data, rather retail sales that are made using electronic cards.

That aggregate data shows that while many of us paid those higher fuel prices, the amount spent on them in March didn't match anything like the price increases. Fuel purchases rose "only" +10.2% in actual terms from the same month in 2025. Overall spending was up +2.5%, which is less than inflation. (March quarter CPI inflation will be released on Tuesday, April 21. It is expected to be north of 3%.)

We are buying less fuel at higher prices. But it is a net higher cost to household budgets.

The electronic cards data also suggests we are spending less on other categories. Being diverted is spending on apparel and hospitality.

Maybe another sign of the stress is that March 2026 saw a record high level of these overall retail purchases using a credit card. And credit cards are high-fee options for merchants.