There are certain things that people like spending money on. Gifts, holidays, a nice meal. We know that putting extra money into a fuel card isn't the most exciting use of your cash, but it still remains one of the most integral parts of ensuring you get the best petrol deals for your business.
However, even the average Kiwi seems to be splashing their cash on petrol these days. The latest data from Statistics New Zealand shows that household spending for the December 2015 quarter increased – including more people purchasing petrol.
So, why are so many people spending more on something like petrol? You would think that this cost would remain quite consistent, but it appears that the low fuel prices at the moment are causing Kiwis to utilise their vehicles a lot more. The New Zealand Herald reports that Economist Gareth Kiernan of Infometrics put the cheaper petrol prices at the head of the increased petrol usage.
Perhaps they are driving out to restaurants more, or carrying more groceries in their vehicles – along with petrol, increases in these domains were the drivers of the 1.1 per cent increase in household spending, reports Statistics New Zealand.
An economic boon
This household spending measure is of particular importance, as it is the largest contributor to our GDP. The New Zealand economy, worth $245 billion, is dominated by the $140 billion spent by households. This cash flow around the country, including into the fuel sectors, might be the major reason that our GDP grew by 0.9 per cent in the December quarter – spending is good for the economy, after all.
It's also a relief after last year's drop in consumer confidence, as Mr Kiernan explained to the New Zealand Herald.
"It seems people are feeling a lot happier after a lull in the middle of the year," he said.
With fuel prices so low and spending so high, it's certainly a good time to be a part of the fuel industry! To get the best deals on your petrol costs, make sure you speak to the team at Card Smart today.