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Government loosens fuel rules as it eyes wider supply, sulphur-rich option not ruled out

Public Policy / news
Government loosens fuel rules as it eyes wider supply, sulphur-rich option not ruled out
Prime Minister Christopher Luxon addresses reporters at a post-Cabinet media conference alongside a sign language interpreter, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones.
Prime Minister Christopher Luxon addresses reporters at a post-Cabinet media conference alongside a sign language interpreter, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones. Image source: Mandy Te

Fuel specifications are temporarily easing to be in line with Australia, with the Government taking advice on allowing sulphur-rich fuel into New Zealand should the situation escalate.

The change could remain in place for a year if needed, as war rages in the Middle East putting NZ imports of petrol, diesel and jet fuel under threat. 

Announced by Resources Minister Shane Jones on Monday, New Zealand will align fuel standards "enabling fuel developed, refined internationally on its way to Australia, to be made available to New Zealand."

"It's a measure that aligns both the standards and it broadens the ability of us to draw fuel from a wider range of sources," he said.

Jones said it was a set of changes that did not deal with one issue; "which has excited elements in the motorist community, whether or not we would allow sulphur rich fuel into New Zealand."

While it was not the Government's intention to do so at this stage, it will take advice should the situation change, giving New Zealand an option to expand supply.

Asked if the change to fuel specifications meant that New Zealand would be allowing dirty fuel, Jones said: "I think that it's unkind of us to refer to our Aussie compatriots as dirty, in many respects, some of the specs that exist in Australia are slightly higher than what we have in New Zealand."

“The change reduces the risk of supply disruptions driven purely by technical specification differences. Fuel companies have told us this could allow them to secure shipments more quickly and from a wider pool of suppliers."

Australia itself has eased standards temporarily, the ABC reporting that could mean an increase in sulphur concentration in some of its fuel. 

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9 Comments

Something smells a bit sulphurous here Shane. Are there lots of uncommited tanker loads of extra polluting liquid energy waiting for the right unsophisicated buyer to turn up? 

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What I'm struggling to find information on is whether there are issues to be aware of for using higher sulphur diesel my 2019 isuzu.

From what I can gather the so called dirty diesel has 15ppm sulphur while the current NZ spec is 10ppm. Back 20 odd years ago it was up to 3000ppm.

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Australia have now allowed 50ppm since March 12 for 60 days. Modern diesels aren’t designed for anything more than 10ppm. Particular the DPF filters will get clogged with soot. Look into it more. There’s all sorts of negative effects of 50ppm sulphur for modern diesels. One or two tanks is ok, but a year of this stuff will ruin your modern engine. I just bought myself a 2026 diesel defender.. face palm. 

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Aligning with Australian standards dosnt exactly seem to increase our chances of obtaining fuel ...especially considering Australia appear to have a more immediate problem than we do.

https://www.theguardian.com/australia-news/2026/mar/22/six-fuel-ships-b…

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Yeah but when/if they find a new source, economies of scale would be improved if say every 5 tankers they slip one to us. That's assuming they secure more than they need. Probably same deal for keeping the Pacific Islands going. Aussie fuel is designed nominally for their warmer climate, I understand that's basically what we're having to change our specs to cater to. It'll be slightly less appropriate in our context but should work.

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That warm climate diesel would be interesting in Central Otago in winter.

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Is this yet another example of these Clowns pretending they know what they are doing?  Anyone who has contemplated buying a no-too-old petrol of diesel vehicle knows that engine tolerances have tightened markedly over the past 10 or more years.

Loose the standards for the trucking industry?  Pity your lot killed off the engine rebuilding industry in the 80's and 90's.

Who is paying backhanders to these idiots?

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Much of the world, the US and Australia included, run ethanol mixes in their fuel as an option. I recognise we don't have significant sources of ethanol to do that domestically, but I do wonder if we could import some, or import blended fuel from Australia. If we're talking a small shortage, adding 10-15% ethanol is something most modern cars are designed to handle.

Our petrol stations possibly aren't designed for it though.

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They can handle some, but not indefinitelty

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