The Government insists there is no immediate risk to Aotearoa’s fuel supply, but is moving to ease pressure from rising prices with targeted support for households due to be announced on Tuesday and new fuel import rules signed off by Cabinet.
The Ministry of Business, Innovation and Employment says current fuel stocks remain “healthy” despite escalating conflict in the Middle East, and there is no need for motorists to change how they buy fuel.
But ministers say while supply remains secure, the impact of rising global fuel prices is already being felt.
Prime Minister Christopher Luxon said fuel security, particularly diesel, remains critical to keeping the country moving.
“We need fuel to ensure that workers can get to work, that kids can get to school, farmers can farm and freight can get to where it needs to get to,” he said.
“So fuel security is without doubt the most pressing issue, particularly for diesel, which is critical to freight and many of our key industries here in New Zealand.”
Luxon warned a disruption to diesel supply could have significant consequences.
“A shortage of diesel could affect thousands of jobs and incomes, so that is why ensuring fuel security is always our first priority.”
He reiterated that current supply levels remain strong, with “healthy stocks again of all three types of fuel” and the market “continuing to operate as normal.”
Data released by MBIE shows New Zealand currently holds just under 47 days of combined fuel cover across petrol, diesel and jet fuel, including shipments already on the way.
Finance Minister Nicola Willis said there was “no cause for concern” in the short term, with all shipments arriving as scheduled and no issues raised by importers.
“These confirm seven weeks of petrol, more than six weeks of diesel and jet fuel, either in the country or in the water on the way here,” she said.
However, she warned risks remain over the medium to longer term, particularly given New Zealand relies on refineries in Southeast Asia for more than 90 percent of its fuel supply.
At the same time, Willis acknowledged the conflict is already driving up fuel prices.
“This conflict is impacting just about every New Zealander. It has pushed up the price of petrol, diesel, and jet fuel, and those increases are already hurting our people and our businesses.”
She said Cabinet had agreed on support measures, with details to be announced on Tuesday.
“The government will shortly be announcing timely, temporary, and targeted measures to support these households most affected by fuel price increases.” She said.
When pressed on who would qualify, Willis said the focus would be on “workers… families with children… and lower to middle-income households.”
Associate Energy Minister, Shane Jones, confirmed Cabinet has also agreed to temporarily align fuel specifications with Australia, allowing fuel refined for the Australian market to be supplied in New Zealand.
“The change reduces the risk of supply disruptions… and broadens our ability to draw fuel from a wider range of sources,” he said.
Jones said the move could allow New Zealand to access large international shipments that would otherwise be unavailable, particularly as supply chains tighten.
He stressed the Government is not currently planning to allow higher sulphur fuels into the country, but said that option could be considered if the situation worsens.
Meanwhile, early signs of behaviour change are emerging as fuel costs rise.
In Wellington, for example, public transport use has increased, with Metlink reporting a three percent rise in passengers on trains and buses compared to the same time last year.
The government says current fluctuations in fuel stocks reflect normal patterns of consumption and shipping, not signs of disruption, and emergency measures under the National Fuel Plan are not being considered at this stage.
Labour leader Chris Hipkins said the Government was failing to provide clear direction, arguing New Zealanders were being left without answers.
“All they’re offering New Zealanders is blame and excuses rather than a plan of action. New Zealanders deserve better,” he said.
Hipkins pointed to what he described as mixed messaging from ministers, questioning whether the situation should be treated as a crisis.
“Once again, the government’s all at sea… is there a crisis, or is there nothing to worry about?”
But when pressed on what Labour would do differently, Hipkins declined to outline an alternative plan.
“I’m not going to make up policy on the fly. We’re not the government.”
Instead, he said the responsibility sits squarely with those currently in power.
“In March 2020, we didn’t wait for the Opposition to come up with solutions… we were focused on leading New Zealand through a once-in-a-generation crisis.”
“This is another once-in-a-generation crisis… the government needs to step up to the plate here.” he said.
MBIE says it will continue to monitor the situation closely, with the next fuel stock update due Wednesday.
