The vast majority of New Zealanders are worried about how the Middle East conflict will affect them financially and most have already taken action, with reducing their fuel costs top of mind, according to research by Westpac NZ.
At the same time, some businesses in the transport, manufacturing and agriculture sectors are already feeling the impacts of rising fuel prices.
A nationally-representative survey of 414 people, conducted by research platform Ideally late last week, found 42% of respondents were very concerned about the impact on their wallet, and another 38% were somewhat concerned.
41% say they've already driven less often to help combat rising fuel prices. 28% have reduced non-essential spending and 26% have changed how they shop for groceries. Only one in four respondents say they haven't changed their spending or behaviour at all.
45% say they're considering using their car less often, with 39% considering cutting back on non-essential spending.
Westpac NZ Managing Director of Institutional and Business Banking, Reuben Tucker, says demand for EVs through the bank's Greater Choices home loan top-up[i] and EV Loan offerings[ii] has soared as fuel prices have risen.
"In the last two weeks the number of applications for EVs through these products has roughly doubled," Mr Tucker says.
"We're the only bank to offer interest-free lending on EVs and chargers, which is a key way we can help customers manage higher living costs not just now but in case of future events."
Westpac home loan customers can borrow up to $50,000 interest-free to buy EVs and chargers, plus energy-efficient home improvements such as solar panels, heat pumps and insulation. Westpac also offers EV loans for non-home loan customers at a rate of 7.99% p.a.
Mr Tucker says while it's too early to see signs of increased household stress in the bank's data, Westpac is standing by to support families and businesses who may struggle due to rising costs.
"For households, we're offering practical support through options like our Debt Consolidation Personal Loan[iii], which allows customers to simplify multiple debts and potentially help them get debt-free faster, plus education through our Managing Your Money workshops and budgeting tools like CashNav[iv].
"Some businesses in sectors such as transport, manufacturing and agriculture, are already feeling the impacts from the conflict. We're reaching out to businesses we've identified as most likely to be affected, to see how we might be able to help.
"Farmers and growers are facing rising fertiliser and fuel prices, and some logistical disruptions to exports, but are generally well-placed to weather the impacts, with stronger balance sheets and cash surpluses than in recent years.
"Transport companies are feeling the pinch of increased fuel prices. Some have contract clauses that allow them to pass some of these costs on to customers, but others are being forced to absorb the added cost.
"The longer the conflict goes on, the higher the risk of supply chain disruptions and cost increases to our business customers, which we're monitoring closely. Many businesses are already doing the work of looking for alternative sources of supply, or deferring large investment plans.
"The good news is our customers' finances are in generally good shape heading into this period of elevated prices. Most households are still rolling onto lower interest rates when they re-fix their home loan, and a higher proportion of households are more than three months ahead on repayments than they were 12 months ago.
"However, the current uncertainty should serve as a good reminder for people to regularly review their money situation and whether they're on track to reach their goals. We encourage anyone who's worried about making ends meet to talk to us - the sooner we're aware of potential issues, the sooner we can help put a plan in place to get you back on track."
