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.
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