Fuel crisis: Reaction as Government strikes deal to procure 90 million litres of diesel
Govt should pause planned excise tax increase – Hipkins
Vera Alves
Labour leader Chris Hipkins believes the Government should pause its planned 12 cent per litre increase to New Zealand's excise tax on fuel and road charges next year, citing pressures from prices at the pump.
Speaking on Ryan Bridge TODAY, Hipkins said the increases on fuel excise tax "should be placed on hold right now because of the situation that we're facing with the massively increased price of fuel", speaking against the increase scheduled for January 2027.
The current fuel excise duty sits at 70.024 per litre, a number unchanged since 2020.
The pause aligns with the growing views of members in the coalition Government, including Prime Minister Christopher Luxon, who told attendees of last month's Automobile Association Annual Conference that going ahead with the increase during a fuel crisis seemed like "a non-starter".
Transport Minister Chris Bishop told the Post last week that the increase would be a "death wish" with fuel prices already over $3 per litre, although Deputy Prime Minister and Act leader David Seymour said at the same time that delaying and starving the National Land Transport Fund (NLTF) of funds would leave New Zealand worse off in the long-term.
Hipkins said Labour's proposal for a targeted capital gains tax would be the only significant new tax they'd campaign on in the upcoming election, arguing that the revenue it accrues would be used to increase health spending.
He did not believe Labour had misled two international ratings agencies, Fitch and Moody's, about their tax plans before their recent downgrading of New Zealand's financial outlook, saying that Shadow Finance Minister Barbara Edmonds had already met with representatives from the ratings agencies to discuss the planned tax and where they'd spend the revenue.
It comes after Finance Minister Nicola Willis accused Labour of failing to disclose to both agencies that the revenue raised would be ring-fenced for health spending, leaving no money aside for reducing the deficit.
In response, Hipkins said the accusations were "just more desperate spin" from Willis.
"New Zealand's getting a credit ratings downgrade and she's trying to spray any sort of blame or deflection that she possibly can on anybody else," he said.
"We are going to introduce a simple targeted capital gains tax and that is as far as the plan goes. We're not going to be introducing other new taxes."
Crude back above US$110 on Strait stalemate fears
Vera Alves
Oil prices have jumped again, climbing back above US$110 ($187) per barrel amid a lack of progress in reopening the key Strait of Hormuz.
Shane Jones says Z Energy deal should give Kiwis confidence
Vera Alves
Kiwis should have confidence that the deal with Z Energy to procure an extra nine days’ supply of diesel will protect against excess risk to fuel supply, the Associate Energy Minister says.
Shane Jones told Newstalk ZB's Mike Hosking Breakfast the deal proves a buffer, "in the event that we do strike a problem logistically or supply lines clog up".
"It could come to pass that things will normalise in a way that's a lot quicker than the average armchair critic believes to be the case.
"But I think that Kiwis, certainly those who are big users of diesel, should have a lot of confidence that we've moved forward, we believe that we've covered off excess risk."
Trump seen as unlikely to accept Iran’s Hormuz deal
Vera Alves
United States President Donald Trump told US security officials that he was likely to reject Iran’s latest proposal to end the war.
David Seymour defends decision to ease trucking regulations
Vera Alves
Deputy Prime Minister David Seymour has defended his plan to ease trucking regulations after NZ First leader Winston Peters said he would not support it.
The changes would allow heavier vehicles across more of the roading network, so trucks could save fuel by making fewer trips.
But Peters has called instead for more use of rail, saying the weight limits exist for good reason such as bridge strength and avoiding potholes.
Seymour – who is Minister for Regulation – told Ryan Bridge TODAY Cabinet had yet to consider the changes, and rail would always be part of the solution.
“But if you look at where most people are, you know, does a train go to your supermarket? Does a train go to your farm? Does a train go to your workplace? Usually the answer is no. So that's why we need both.”
Seymour was speaking alongside Green Party co-leader Marama Davidson, who said her party had been consistent for decades in calling for proper investment into rail, particularly freight.
“That would take a huge massive dependence of fossil fuel off our beaten-up roads,” she said.
Public won't find out cost of the Z Energy deal until it has been paid
Vera Alves
The cost to the taxpayer of the deal with Z Energy to procure an extra nine days’ supply of diesel will not be in the billions, Finance Minister Nicola Willis says.
But officials have advised she can’t give even a ballpark figure without exposing the taxpayer to risk as part of the Government's negotiations, she told Ryan Bridge Today.
The cost of the deal would become public once it had been paid, and it would be funded completely out of the Government’s budgeted operation allowance, Willis said.
“We've been doing a bit of a rejig of the Budget to make sure New Zealand's highest priorities right now can be met and I don't think there can be any higher priority than ensuring that we've got the fuel needed to keep our economy going.”
Asked why the Government couldn’t just make fuel companies increase their minimum stockholding obligations, Willis said that would potentially add to the cost of fuel at the pump.
There also was not enough spare storage in New Zealand to take that approach.
Deal with Z Energy a 'buffer' for NZ
Vera Alves
The Government's deal with Z Energy to bring extra diesel supply to Marsden Point will give an extra buffer and more flexibility in the system, says a fuel boss.
The deal, which would contract the fuel distributor to procure 90 million litres of diesel (equivalent of nine days’ supply), was announced yesterday.
Waitomo Group chief executive Simon Parham told Newstalk ZB's Early Edition with Ryan Bridge the deal is a "good thing".
"Not only is it a buffer, but it's some flex in the system that they can use if there are any delays with any cargoes."
It also sends a message to the public that the system is "rebalancing" across the Asia Pacific region, he said.
Cost of jet fuel, not supply, concerning operators
Vera Alves
Aviation industry CEO Simon Wallace says the cost of jet fuel – rather than supply worries – is what's hurting the industry most at the moment.
Operators had been hit hard by a 100% increase in the cost of jet fuel as well as avgas, he told Newstalk ZB's Ryan Bridge Early Edition.
The Government yesterday announced it had struck a deal with Z Energy to procure an additional 90 million litres of diesel – about nine days’ supply – to be stored at Marsden Point.
Asked how the aviation industry felt about there being no equivalent deal on jet fuel, Wallace said aviation was also a big diesel user.
“Diesel's really important for all our farm vehicles, and in agricultural aviation diesel's important for all our tourist boats, and we bring a lot of tourists into New Zealand on aircraft."