Prime Minister Christopher Luxon says oil importers are “highly confident” about future orders as he reassured that New Zealand’s fuel supply is secure.
He told the Mike Hosking Breakfast show this morning that oil importers he has spoken to are all highly confident about orders going into mid-May and beyond.
“Their refineries are finding alternative sources of crude. It is coming at a price obviously, which is a challenge for everybody, we get that, but my god, if we lose supply, that’s the biggest problem we’ve got.”
The war in the Middle East is entering its seventh week as Kiwis continue to feel the impact of higher fuel prices.
Luxon said that an essential supplies agreement, which is part of a “comprehensive strategic partnership” with Singapore, would help secure the fuel supply.
New Zealand is operating under the agreement already, with Luxon saying he would fly to Singapore on May 1 to sign it.
“We wanted always to make sure that we could get fuel and pharmaceuticals in a crisis. And if you’re Singapore, what do they want from New Zealand? They want food, and we’ve got plenty of it.
“So that’s the nature of our agreement.”
The Government would make an announcement within a week on a deal to bring more diesel storage to Marsden Point.
“We’ve accelerated the tank up at Marsden Point. It’ll be built and completed in seven weeks and, as a result, we want to get additional diesel into that.
“That would be what’s called an unsolicited bid and so we’re evaluating some of those right now.”
Last week, Foreign Minister Winston Peters flew to the United States to meet with Secretary of State Marco Rubio.
Peters said the US was open to supplying Pacific countries with fuel if the war continues.
US President Donald Trump has ordered the US Navy to block the Strait of Hormuz shipping lane after peace talks in Pakistan broke down without an agreement, AFP reported.
On Friday, the Prime Minister and Auckland Mayor Wayne Brown announced the Auckland City Deal, which sets out how the Government and the council will work together to unlock the city’s potential.
The partnership will coordinate planning around issues such as infrastructure investment, housing, transport and economic development.
Luxon said Auckland had huge potential for growth that the whole country could benefit from.
“Auckland is New Zealand’s economic engine room. This deal is about getting that engine room firing on all cylinders so that we can lift incomes, create more jobs and make Auckland, and therefore New Zealand, more prosperous.”
He said this morning that “over the last 30 years it’s been a Punch and Judy show between central and local government, frankly”.
“They’re not aligned, they’re not on the same pages, they do stuff to each other that’s just counterproductive.”
The deal would allow the two parties to work in a coherent and strategic way, Luxon told Hosking.
A Taxpayers’ Union-Curia poll released on Tuesday had Luxon’s National Party on 29.8% compared to Labour’s 33.4%.
The results would have National winning 37 seats compared to the 48 it currently holds.