Living is about to get even more expensive as the world squeezes Russian President Vladimir Putin with sanctions.
United States President Joe Biden's ban of Russian oil could mean petrol in New Zealand hits $4 a litre and Prime Minister Jacinda Ardern says she's worried.
Kiwis are really paying at the pump these days - $3.30 a litre for 91 in some places. But AA fuel expert Terry Myer warns it could get worse.
"We will see some grades of petrol at $4," he told Newshub. "We're currently at the mercy of what's happening overseas."
Enter, the Putin price hike.
"The economic recovery from COVID, the supply constraints, and now the war, means that we have a perfect storm," Ardern said on Wednesday.
By the day, the world is cutting off more of Russia. McDonald's and Coca-Cola are the latest chains to pull out.
The White House's latest move to punish Moscow is banning imports of Russian oil and gas.
"The decision today is not without cost here at home," Biden said.
Kiwis too will pay the price to punish Putin.
"We are deeply concerned about what will likely happen to energy prices," Ardern said.
New Zealand hasn't imported Russian oil since January 2021 but Biden's move will put pressure on the international oil market, which will drive up the cost of everything. You need petrol to make goods and to move goods.
"Bread and what have you might also go up, so this is going to hit some of the staples households can't avoid. They have to pay for these goods and services," Infometrics senior economist Brad Olsen told Newshub.
Ardern hopes three policies will help.
"The increase in the Family Tax Credit, the increase in the minimum wage, we've got the Winter Energy Payment coming - all of those will help with easing the pressure."
And 14 days after the bombs started falling, the Government on Wednesday moved to deal its own blow to Putin with the Russia Sanctions Bill. The law - set to pass on Wednesday - allows for powerful Russian oligarchs to be sanctioned.
Though, not among them is Alexander Abramov and his luxury Northland Helena Bay lodge. Greenpeace is preparing to set sail and join a flotilla calling for his Helena Bay asset to be frozen.
"When we're looking at imposing sanctions there must be thresholds that must be met," said Foreign Affairs Minister Nanaia Mahuta.
She's promising rich Russians won't arbitrarily be caught up in Putin's punishments.
