New Zealand weighs fuel aid as global oil prices surge after Iran tensions
Rising fuel prices are hitting New Zealanders hard, with some households struggling more than others. The government is now exploring temporary support for those worst affected by the growing cost of living. Meanwhile, debates continue over the country's reliance on imported fuel after its last refinery closed in 2022.
Global oil prices have surged following US and Israeli strikes on Iran. In March 2026, tensions pushed WTI crude above 90 USD per barrel and Brent near 110 USD, with current levels hovering around 96-98 USD for WTI and 100-119 USD for Brent. Iran has since threatened ships in the Strait of Hormuz and targeted energy infrastructure in neighbouring US-allied nations, further disrupting supply chains.
New Zealand no longer refines its own fuel, depending entirely on imports since the 2022 shutdown of the Marsden Point facility. The country's largest import terminal, Marsden Point, now holds enough stockpiles to cover seven weeks of demand—if shipments remain steady. Yet, senior coalition politicians remain divided over whether closing the refinery was the right move. Finance Minister Nicola Willis has signalled potential short-term aid for workers facing the sharpest budget pressures. The proposal aims to ease the strain of fuel costs, though no final decisions have been announced.
New Zealand's fuel reserves stand at seven weeks, but ongoing geopolitical instability keeps prices volatile. The government's possible relief measures would target those most squeezed by rising expenses. For now, the country remains dependent on uninterrupted imports to maintain its fuel buffer.
