Fuel situation could get worse before better, says Christopher Luxon

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Source: Radio New Zealand

Prime Minister Christopher Luxon has acknowledged a “big shift” in the government’s messaging around the war in the Middle East, warning New Zealanders the fuel situation could get worse before it gets better.

Speaking at a media conference at Parliament on Thursday, Luxon said it had become clear the conflict would have ongoing effects on supply chains, even “in the unlikely event” it was resolved tomorrow.

“Hope is not a plan,” he said. “And so we are preparing for the worst-case scenario where the conflict is prolonged.”

Luxon said ministers, officials and industry were all keenly focused on the next eight to 12-weeks.

“New Zealand has sufficient fuel supplies. But I do want to be straight with New Zealanders: things could get worse before they actually get better. And [as] a responsible government, we need to take a prudent response and be very prepared.”

Standing alongside him, Finance Minister Nicola Willis said she wanted to reassure New Zealanders the government was taking the situation seriously in case future fuel supplies were disrupted.

“We live in challenging times,” she said. “We’re not just sitting back and saying, well, the fuel supplies are fine now. They are fine now… but we are actively preparing for scenarios where they are disrupted in future.”While the tone of the media conference was sharper than previous ones, the substance of the government’s plan remained largely as outlined earlier in the week.

That included engaging with other countries around accessing refined fuel and keeping in close contact with fuel companies to stay on top of any challenges.

Willis said she would provide an update next week on the steps which could be taken at each level of the National Fuel Plan, but stressed no escalation was required right now given the country had seven weeks’ worth of fuel either in the country or on its way.

Officials would soon begin giving public updates on the country’s fuel levels twice a week, up from just once a week now.

Petrol stations across the country are seeing a surge of drivers filling up as petrol prices rises amid fears of rapidly jumping prices and potential shortages.

On Thursday, New World’s Levin station had no 91 or diesel. The local Z also had no diesel but was expecting some after midnight.

Willis said that was being driven by the individual fuel companies’ logistics and distribution, not by a national fuel shortages.

“They have sufficient supplies in the country to replenish their stocks and petrol stations. So they will be able to do that.

“But when people are buying more petrol, then they go through more at the petrol station than is normally the case. They are working to ensure that their logistics, their distribution, is working as effectively as possible.”

Regarding potential cost-of-living support, Willis said she had instructed Inland Revenue and Treasury to work on some options relating to the “tax and transfer system”.

But she stressed the government would not be able to allievate all of the cost pressures.

“We have to be careful not to raise an expectation that we will be able to blunt all of the pain that is occurring for people across the world because of the conflict in the Middle East.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

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