The Government will allow fuel that meets Australian criteria into the New Zealand market as pressures are felt at the pump over the effective closure of the Strait of Hormuz.
Associate Energy Minister Shane Jones said the decision would remove “unnecessary technical barriers” amid a tight global fuel market where “flexibility matters”.
It would help ensure New Zealand wasn’t excluded from supply Australia was accessing, and ultimately provide fuel importers with more options, he said.
“Countries that can access a wider range of shipments are better placed to keep fuel flowing.”
New Zealand’s fuel specifications were already very similar to Australia’s.
Fuel refined to Australian standards was compatible with New Zealand vehicles, the NZ First MP said. That fuel also met safety and quality expectations, he added.
New Zealand would not, however, be following Australia’s lead and relaxing standards to allow higher-sulphur fuel - although the Government would monitor whether further changes to fuel specifications could open up further supply channels if necessary.
This arrangement could remain in place for up to 12 months if needed.
Jones, along with Prime Minister Christopher Luxon and Finance Minister Nicola Willis, made the announcement after today’s Cabinet meeting.
The Government is moving to a twice-weekly model of updating New Zealand on the supply situation in light of the Middle East conflict and effective closure of the Strait of Hormuz.
The update, accurate to March 18, shows New Zealand had 49.9 days’ worth of petrol either in-country or on-water, 45.5 days of diesel and 44.7 days of jet fuel. The combined stock total is 46.9 days.
A further eight shipments were expected to arrive by April 1. Of those, seven were expected between March 19 and 25. They carried 20 days of petrol, 16 of diesel and 12 of jet fuel.
An additional vessel was scheduled for between March 26 and April 1. That, however, carried no petrol, four days of diesel and 10 days of jet fuel.
“This data does not include shipments more than two weeks away, including cargoes already loaded, currently loading or planned,” the Ministry of Business, Innovation and Employment said.
In comparison, the previous update, which was accurate to March 15, showed New Zealand had 51.3 days’ worth of petrol either in-country or on-water, 47.1 days of diesel and 49 days of jet fuel.
Eleven shipments were expected to arrive by March 29.
There is much to discuss at Cabinet today. Global instability reinforces the need for sensible economic management to help Kiwis get through this challenge.
— Christopher Luxon (@chrisluxonmp) March 22, 2026
The Finance Minister @NicolaWillisMP and I will be joined by Associate Energy Minister Shane Jones later today to give… pic.twitter.com/vK8klSXgs5
Willis said she expected the exact number of days of fuel stock to jump around slightly, but New Zealand continued to have ample stock, in-country and on the way.
Australia receives about 80 shipments of oil per month on average, according to the Guardian.
On Sunday, it was reported that six oil ships expected to head to Australia from various Asian nations had been deferred or cancelled in recent days.
Willis said that hadn’t happened to any vessels coming here.
“But that is one of the things that we are watching for that would be a sign that we might have future supply disruptions,” she said, acknowledging it was a small proportion of the overall shipments Australia receives.
“Some of those are deferred rather than cancelled, so they’re somewhat delayed.
“What we can expect is with the crunch that’s on with the Strait of Hormuz, the extra tankers that are around other ports in the world, that there may be delays in shipments, and that shouldn’t always be taken as a sign that there will be supply shortages, but that we can expect some delays in the supply chain.”
The Government has the National Fuel Plan, which lays out potential measures that could be taken should there be a larger impact on New Zealand’s supply of fuel. New Zealand is currently at Level 1, which primarily involves the Government co-ordinating with industry to limit any potential disruption.
Willis said New Zealanders were already voluntarily taking action to reduce their own travel, including carpooling or taking public transport.
“I just note that Kiwis are making those choices even without me telling them to.”
She acknowledged some petrol stations had experienced high demand and some were seeing their stock dwindle more quickly, depending on how competitive their prices were.
“The fuel companies are ready to make sure that they can be topped up again. If a station runs dry, it can be topped up.
“Ultimately, New Zealanders are making their own decisions about when they fill their tanks, but it doesn’t have an overall impact on the supply of fuel available in New Zealand.”
Last week, Luxon said the Government was preparing for the “worst-case scenario”.
Among possible actions the Government could take is diversifying where fuel is imported from, broadening the types of fuel that can be imported, and bringing down the minimum amount of fuel companies must hold.
Over the weekend, petrol hit $4 a litre in some Auckland suburbs, with an average of $3.30 a litre for unleaded 91 and $3.61 a litre for unleaded 98 across the country.
In terms of Government support for households challenged by rising prices, the Herald reported last week that two potential levers that could be pulled would be making adjustments to the In-Work Tax Credit and the Independent Earner Tax Credit.
If these were increased, the beneficiaries would be working people and families, as opposed to New Zealanders on the benefit or superannuants.
Jamie Ensor is the NZ Herald’s chief political reporter, based in the press gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards.