The Ukraine war and economic sanctions on Russia are expected to drive up already high petrol prices, creating a "scary" time for motorists.
Petrol stations around Bay of Plenty were this week advertising 91 between $2.627 and $2.789 per litre, 95 between $2.907 and $3.059 per litre, and diesel between $1.817 and $1.989 per litre.
According to Government monitoring, the national average price per litre at the end of February last year was $2.174 for 91, $2.318 for 95 and $1.389 for diesel.
The price of oil has increased since Russia's invasion of Ukraine with it sitting at US$105 ($156) per barrel compared to US$92 ($135.84) the week before.
Meanwhile, an economic expert predicts inflation and high living costs will be with us for some time.
Bay of Plenty motorist and hospitality worker Yolima Tavares Monterrosa told NZME her working hours had been significantly reduced, putting pressure on her petrol costs.
"It's scary sometimes," Monterrosa said.
"We know only what is happening today. Tomorrow all our plans could change.
"Our expenses changed drastically between November and January."
Monterrosa and her family of three have reduced the number of car trips they take each week so they spend no more than $40 on petrol.
"There are no unnecessary trips. We reach our needs, nothing extra."
This comes amid fears New Zealand will soon be more vulnerable to fuel supply disruption and shortages at the pump when a new fuel import supply chain system highly reliant on foreign ships comes into effect.
Prices in some areas of the country for unleaded 95 have already passed $3/litre and fuel commentators have indicated that $3/litre for unleaded 91 is also not far off.
"What's ridiculous is that you can spend double the amount of money to make the same number of trips," Monterrosa said.
"We have permanent expenses and responsibilities like our mortgage."
Monterrosa said wage increases did not meet the rising cost of petrol and inflation on other products.
Te Rina Marsh lives in Tauranga and travels to Rotorua two to three times a week. The 25-year-old's new car needs about 37 litres to fill up.
"It's pretty crazy," Marsh said. "I just got this car and it took $55 to top it up just now."
Marsh said she would usually fill up on petrol once a week. She estimated petrol would cost her about $80 per week.
Tag Burger business director Kim Archer drove her food truck to markets across Bay of Plenty with a lot of its business being in Tauranga.
"[Fuel price hikes] have affected us quite a bit. There is extra cost but I'm trying to absorb it.
"Your prices still have to be attractive to customers so you have to keep that in mind."
Archer said she believed the fuel prices and rising inflation would get worse before improving.
"Sustainability is going to be harder next year."
Text A Truck Tauranga owner Glen Deal said his spending on petrol had increased by 25 per cent.
Deal said the increase in costs to run the business had to be passed on to clients.
"That hasn't directly led to a downturn in work but I'm seeing a trail off now.
"People are moving less and it's harder to get new jobs at the moment."
While Deal said he wasn't completely negative about the future, advance bookings had dropped off.
"We're getting bookings three weeks in advance instead of six weeks.
"I'm beginning to get push back from clients about the prices."
First Union Tauranga organiser Marleina Kerapa said the cost of petrol, along with big increases in the cost of rent, housing and food was causing a "crisis" for union members.
"Many people are having to seek extra hours beyond what they're offered just to cover the basics and the increased cost of living," Kerapa said.
"There is very little room for quality of life after this."
Kerapa said low pay rates were not attracting people to work for some of the big companies in the area, and many businesses weren't offering enough hours for people to live on.
"Generally I think people are feeling very financially stressed and struggling to live week to week, let alone enjoy themselves and have a good social life outside of work."
Tauranga Chamber of Commerce chief executive Matt Cowley said rising fuel prices were adding to general inflations across multiple costs.
Cowley said the petrol price hikes affected staff, suppliers, shipping and operations.
"It's the cumulative [effect] that does the damage for a wide variety of businesses," he said.
"Government is benefitting from the increased fuel prices, so people want to see the Government invest that new revenue in fixing congestion on the region's state highways."
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Cowley said rising housing and transport costs meant people were looking for the most convenient and cost-effective way of going to work.
"For others, they would rather change employment than ditch their car, particularly since there are a lot of job vacancies around.
"There are a number of businesses where staff and fuel are their biggest costs, including tradies, logistics, and passenger transport companies."
"Today's economy and production is highly connected. We live in a small village," Otago University research economist Dr Murat Ungor said.
"Toys for babies or bicycles, laptops, these are final products but within those products, there are many parts which are produced in different countries.
"If there is a problem in one part of the world this affects the rest of the production process."
Ungor said Russia was the major exporter and producer of oil and natural gas to Europe.
"Last year half of Russia's exports were to the US, UK and Europe."
Ungor said the war in Ukraine would lead to an increasing energy crisis and also cause the costs of goods to increase.
"Russia and Ukraine also export primary and agricultural goods so there will be big fluctuations in food prices.
"We expect increases in food, energy and oil prices, inflation is going to increase in many countries and there will be spillover to New Zealand."
Ungor said the most up-to-date inflation rate was calculated at 5.9 per cent. According to recent predictions the inflation rate at the end of March could reach as high as 8 per cent.
"Everything depends on the duration of this conflict."
Ungor said forecasts can always change but 2022 would be a tough year.
"One thing we can say is we are going to live with inflation, with high living costs for a while. It's not a temporary, short-term situation."