Prime Minister Christopher Luxon announced adjustments to fuel import regulations today, allowing petrol and diesel meeting Australian standards to be sold in New Zealand. The move, revealed at a post-Cabinet press conference, comes as fuel stock levels continue to decline, prompting concerns about supply.
As of March 18, the Ministry of Business, Innovation and Employment (MBIE) reported national petrol stocks at 49.9 days, down from 51.3 days on March 15. Diesel reserves as well decreased, falling to 45.5 days from 47.1 days over the same period. Jet fuel stocks are at 44.7 days, a decrease from 49 days. Combined fuel stock levels are currently at 46.9 days.
Finance Minister Nicola Willis, who was appointed Minister for Economic Growth in January, and Associate Energy Minister Shane Jones were scheduled to join Luxon at the press conference. The appointment of Willis to the Economic Growth portfolio, previously held by Melissa Lee as Economic Development, formalises her lead role in economic policy, according to statements made earlier this year.
The decision to ease fuel rules reflects the government’s focus on addressing economic challenges and ensuring fuel security. Willis has stated her intention to engage with businesses and drive reforms to boost economic growth, investment, and job creation. The move is intended to increase fuel supply and potentially alleviate price pressures, even though both Luxon and Willis have previously indicated that any price relief would be “timely, temporary, and targeted.”
The Ministry of Business, Innovation and Employment (MBIE) was established in 2012 during the previous National government, merging four departments – the Ministry of Economic Development, Ministry of Science and Innovation, Department of Labour and Department of Building and Housing – to streamline policy leadership and reduce costs. Willis now oversees MBIE as part of her expanded role.
The government’s approach to economic interventions has been shaped by the findings of the Covid-19 Royal Commission report, which cautioned against broad financial responses to economic shocks. This context informs the government’s cautious approach to fuel price relief, prioritizing targeted measures over widespread subsidies.
