Iran war: Government to change fuel specifications to align with Australia
Monday, 23 March 2026
The Government will change New Zealand’s fuel specifications to match Australia’s, Associate Energy Minister Shane Jones has announced.
Jones says the change would allow fuel importers more flexibility as they face a gigantic supply shock brought by the Iran war.
“Countries that can access a wider range of shipments are better placed to keep fuel flowing,” Jones said,
“This decision removes unnecessary technical barriers and helps ensure New Zealand isn’t excluded from available supply our neighbours across the Tasman are accessing.”
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New Zealand’s engine fuel specifications dictate the type of fuel blends that are allowed to be sold in New Zealand.
Jones told media that the fuel coming in under the new rules would still be up to the “fit for common purpose” standard ‒ which means diesel intended for very hot climates would not be sold in very hot ones.
He said the fuel was not any “dirtier”.
“This is something that we will lay upon the importers, but the suggestion that we're bringing soiled fuel is fervent imagination.”
The changes do not include allowing higher sulphur fuel, which is something Australia is now allowing.
Jones said the Government would keep an eye on whether further changes such as allowing higher sulphur fuel could open up further supply channels.
A spokesperson for Z Energy welcomed the change as a “a practical way for the industry to broaden potential future fuel supply options”.
Prime Minister Christopher Luxon said in the context of the global oil market disruptions the change made sense.
“It doesn't make sense for us to have our own bespoke standards where we can align and harmonise with Australia.”
The temporary alignment with Australian specifications could be in place for up to a year ‒ and perhaps longer, with Jones indicating he would like to make it a long-term arrangement.
It comes as newly released figures show there was notably less fuel in reserve for New Zealand as of Sunday night, and only one fuel ship set to come to this country in the week from Wednesday.
Transport Minister Chris Bishop said on Monday morning the markedly higher fuel prices would force the Government to reassess its transport priorities.