Prime Minister Christopher Luxon wants to get “straight with New Zealanders… things could get worse before they actually get better” when it comes to the impact of increasing fuel prices from the conflict in the Middle East.
It comes as petrol prices surpass $3 for 91, with many stations around the country experiencing an increase in demand, on occasion leaving some running dry.
In an update on Thursday afternoon, Finance Minister Nicola Willis said they were looking at not only a conflict that could be prolonged, but also supply chain impacts felt beyond the end of the conflict.
A potential temporary and targeted measure is being worked on by IRD and Treasury, with Willis confirming they were looking at the tax and transfer system.
Luxon said the Government was preparing for the worst.
That involved a ‘diplomatic strategy’, led by Luxon, talking to countries about securing fuel. They had already had conversations with Australia, the UAE and Qatar.
There was also consultation with the fuel industry led by Willis, and the domestic response via the National Fuel Plan, which was developed mid-2024.
“Hope is not a plan,” Luxon said.
Latest figures show fuel stock supply is still stable, with 49 days in total in country and heading to NZ.
Given the current situation they were working on “fleshing” the plan out more, Luxon said, with an update coming next week.
Willis said they needed to plan for the possibility of future fuel disruptions.
7 Comments
Maybe hoarding is a good idea.
Remember that petrol goes stale, so a petrol stabiliser product might be necessary if anyone plans to hoard for extended periods (google petrol stabiliser for options). At least NZ petrol does seem to take longer than petrol (gasoline) in the USA.
Of course, anyone buying several jerry cans should calculate how much they are saving overall. Good grief, 20L Scepter brand jerry cans are around $50 each now! Assuming you only put in 20 litres and hope to beat the price increases (as distinct from hoarding), prices would have to rise $2.50/L to get your money back.
You're better buying fuel in advance, let the gas station store it.
Been out planting some more winter veges in the garden just in case armageddon falls upon us.
Talk about stating the obvious… trump has lost (or never was in control) control of the escalation
Indeed, Iran has him by the proverbials. He can either walk away and pretend it never happened, which his groupies would believe, but his ego won't let him and Iran still won't open Hormuz to the American empire unless he removes his bases and pays reparations, The other option, land invasion to control the waterway? That won't go well as the body bags start flying home.
As far as our government praying for a miracle as a policy choice? That shows a total lack of leadership skills and is potentially dangerously irresponsible!
"Could get worse" ?
Not much doubt about it; I guess they're trying to break to the public gently.
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