Christopher Luxon speaks as fuel crisis takes toll at pumps, Trump threatens to ‘take out’ Iran

Prime Minister Christopher Luxon said that the Government was talking to fuel importers every day, often several times a day. File photo / Michael Craig

New Zealand remains in Phase 1 of its fuel supply plan because there are no signs of significant supply disruptions, Prime Minister Christopher Luxon says.

The PM is addressing the media this morning as the fuel crisis enters its sixth week, after US President Donald Trump threatened Iran could be “taken out” completely in his strongest response to date.

This morning, Trump warned all of Iran could be “taken out” if it does not immediately reopen the Strait of Hormuz, a key pipeline for 20% of the world’s oil.

Much of New Zealand’s refined fuel comes from oil that travels through the strait.

The impact has been felt here with higher fuel prices, with fears of possible shortages of everything from diesel to fertiliser and plastics as the conflict drags on.

But Luxon this morning rejected the idea of whipping people into a frenzy over the fuel crisis to gain political capital, telling Hosking that “it’s not Covid - it’s not life and death”.

Asked if New Zealand was hustling, like Australia, to get fuel shipments from different sources, Luxon pointed out Australia had started with lower fuel stocks in the country and did not have the regulatory frameworks New Zealand already had in place.

The Government was talking to fuel importers every day, often several times a day, and all were saying they had no risk to future orders.

“They’re finding sources of oil from other places … some of it’s coming from Canada, some of it will be coming from Peru, Chile, Suriname, West Africa, other places as well.”

As the repercussions of the war continue to ripple outwards, Foreign Minister Winston Peters is in Washington DC where he will meet with officials, including United States Secretary of State Marco Rubio.

That meeting will be dominated by calling for a winding down of the conflict, Luxon said.

“It’s really a chance for Winston to say, look, this is having huge impacts around the world, it’s obviously having huge impacts for us at home, and to encourage the US and Iran to de-escalate as quickly as possible.

Finance Minister Nicola Willis on Sunday acknowledged increased fuel costs were affecting Kiwis, saying it was “a tough time for the country” and calling for de-escalation in the Middle East.

Willis said yesterday she was seeing “normal flow of fuel” into the country, while the Ministry of Business, Innovation and Employment (MBIE) said fuel stocks remained stable.

Petrol and jet fuel had seen a slight increase, while diesel stocks had dropped slightly, from 52.2 days’ worth to 51.5 days’ worth.

Luxon’s media appearance also follows Thursday’s Cabinet reshuffle, which saw Chris Bishop lose his party campaign chair role to Simeon Brown.

Though Bishop’s demotion is widely seen as a punishment for perceived disloyalty, Luxon said it was purely because Bishop already had a massive workload and he “absolutely” trusted his minister.

Brown, who is Minister of Health, also gained the energy portfolio, swapping with Simon Watts, who picked up Brown’s previous role as Minister for Auckland. Luxon also promoted Chris Penk and Penny Simmonds to Cabinet.

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