New Zealand officials consider reviving 1979-era car restrictions and fuel rationing as Middle East conflict disrupts supplies and sends prices soaring.
WELLINGTON: New Zealand officials are considering reviving decades-old laws to restrict vehicle use if the Middle East conflict causes a severe disruption to fuel supplies.
Finance Minister Nicola Willis told reporters that officials had discussed using legislation introduced in 1979, following the Iranian revolution, to manage a potential crisis.
Under those laws, car owners would have to nominate one day per week when they could not use their vehicle, facing hefty fines if caught driving.
The legislation also allows the government to authorise fuel rationing through a coupon system and to restrict the amount of fuel sold.
These so-called “carless days” were last in effect from July 1979 to May 1980.
The minister’s comments came as oil prices surged back above USD 100 a barrel following Iranian attacks on shipping that have effectively closed the Strait of Hormuz.
In fuel-import dependent New Zealand, the average petrol price has increased by nearly 10% since the war began, with diesel up more than 20%, according to price monitor Gaspy.
Willis stressed that the car restrictions would only be needed “if we were seeing genuine disruption to our ability to get fuel”.
Energy Minister Shane Jones stated there was currently about 50 days worth of fuel in or en route to New Zealand.
National airline Air New Zealand also announced it had cancelled 5% of its flights for the next two months, mainly on domestic routes, due to rising jet fuel costs.
