'Clearly, there's been a material change in the situation' - Fuel crisis prompts review of transport plan and future excise increase

The fuel crisis is forcing the Government to put a magnifying glass over its transport plan and the upcoming fuel excise increase.

Announcing loans for more Electric Vehicle (EV) charges in Lower Hutt on Monday morning, Transport Minister Chris Bishop said the Government was working its way through its transport commitments - “and clearly there's been a material change in the situation in the last few weeks.”

As petrol and diesel prices continue to rise and fuel security becomes increasingly fragile, advice has been sought about potential measures to deal with demand, while fuel stocks are being closely monitored.

“I think you have to reassess commitments in light of changed situations,” Bishop said. “That's the plan at the moment, and when that plan changes, we'll tell you.”

Excise is going up 12 cents in 2027, which will contribute funding to the Government’s transport promises.

“Clearly, the fuel price increases that New Zealanders are experiencing each and every day at the pump are prompting reassessments of lots of things inside government. I think you can expect that to continue,” Bishop said.

From a security and price perspective, Bishop said it was diesel that they were more worried about due to the flow on costs.

“Seeing people increasingly look at public transport, and I think you're going to see that continue, but there will be flow on costs for public transport operators as well."

“I'm working with NZTA [the New Zealand Transport Agency], and in fact, I've got a meeting with all of the public transport authorities …  in a couple of hours, to go through what they're seeing, what the impacts are on them, what contingency planning they've got in place for capacity increases that may or may not be happening.

“It's a very dynamic environment, and we're looking at all of those issues.”

Finance Minister Nicola Willis said at some petrol stations; “depending on how competitive the price is on a particular day, we are seeing that they are being used up more quickly.”

“The fuel companies are ready to make sure that they can be topped up again so if a station runs dry it can be topped up, and ultimately. New Zealanders are making their own decisions about when they fill their tanks, but it doesn't have an overall impact on the supply of fuel available.”

Over the weekend, the Green Party proposed a package for free public transport and a windfall profits tax to prevent corporations from price gouging.