Source: Radio New Zealand
New Zealand is preparing for a prolonged conflict in the Middle East as attacks on the world’s largest natural gasfield create even more uncertainty at the pump. RNZ / Quin Tauetau
New Zealand is preparing for a prolonged conflict in the Middle East as attacks on the world’s largest natural gasfield in Pars create even more uncertainty at the pump.
Prime Minister Christopher Luxon has warned the fuel situation could get worse, before it gets better.
Brent Crude prices surged to US$109 a barrel on Thursday following the attacks, prompting motorists to fill up before prices got even higher.
Some people were unlucky, arriving at the pump after it had run dry.
At an NPD in Christchurch, many were nervous about how much a trip to the service station could soon cost.
“I’m currently studying, so it’s not really helpful. I live 40 minutes out of town and then commuting, and so it’s kind of like a bit of a sting in the butt trying to get through study, and it’s like, let’s add more stress,” one student said.
Another person had been checking prices daily: “I’ve been keeping an eye on it, looking at the apps and just checking each day whether or not today’s the day I should go fuel up.”
While others were more optimistic, and said they had just started to take the bus.
As of Thursday, New Zealand had 41.3 days worth of petrol, 47 days of diesel and 49 days of Jet Fuel.
Luxon assured New Zealanders officials were doing what they could to prepare for a fuel shortage.
“Like all New Zealanders, we hope that the conflict is ending quickly, but hope is not a plan, and so we are preparing for the worst case scenario where the conflict is prolonged,” Luxon said.
Prime Minister Christopher Luxon. RNZ / Samuel Rillstone
But energy analyst David Keat did not think New Zealand would run out of fuel for long periods of time, if at all.
Keat said the country should be ok.
“I imagine we might miss a few cargos, but in terms of the physical supply, I can’t see us running out for long periods, if at all.
“The price though is a different thing, because everybody is bidding for these cargos and it’s a seller’s market, so the price could go very high.”
The government would consider more details in the fuel escalation level plan next week.
It had four levels of concern, similar to the levels seen during Covid-19.
Rural Contractors New Zealand said its members were already being hit hard, with one larger contractor’s fuel bill rising by $5000 a day.
CEO Andrew Olsen said the agriculture industry needed to be a priority.
“Everyone’s important and naturally will say we are, but I think this is Covid 2.0 and agriculture received dispensations to continue to operate and it’s important, it’s our GDP, 20 percent of it.”
Olsen said the conflict and resulting fuel shortage had come at the worst time.
“It’s a very busy part of the year, we’ve got the maize harvest in full swing in the North Island and we’ve still got a lot of grass work occurring elsewhere, big machines, lots of fuel consumption.
“We’ve also got the viticulture harvest right now and we’ve also got the kiwifruit harvest,” he said
Business Canterbury CEO Leeann Watson believed there were takeaways from the Covid-19 response that should be considered.
“There’s quite a lot of learning’s here from Covid. You know, in some cases we were quite slow to do some planning and you know while we in particular as Business Canterbury at this stage we’re not being alarmist.
“We think it’s really important that businesses do start to do some planning and thinking about the options that they do have moving forward.”
Watson said it was crucial officials kept businesses informed.
The government’s next update on the fuel crisis will be on Monday.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
