On Sunday, the US bombed several nuclear sites in Iran. Peters said New Zealand noted the attacks and the US’ claim it was done in “self-defence” amid calls from the Opposition to denounce the bombings as a breach of international law.
Overnight, Iran launched missiles at a major US base in Qatar in retaliation.
Govt won’t offer fuel subsidies if prices spike – Willis
Speaking to reporters this morning, Finance Minister Nicola Willis ruled out implementing fuel subsidies if the Israel-Iran war led to spiking oil prices.
Willis had received advice from the Treasury yesterday, which stated the general rule that a $10 increase in the price of a barrel of oil translated to a 10-cent increase in the price of fuel in New Zealand.
“What we saw last week was that oil prices went up about $10 but of course, you’re still seeing fluctuation today,” she said.
“Ultimately, the question is, ‘Will there be a disruption to oil supply chains and therefore, what impact will that have?’”
Willis confirmed she wouldn’t consider subsidising fuel as it was “difficult to sustain”, noting the “pain” the previous Labour Government went through implementing a subsidy.
Labour cut 25 cents per litre of fuel in 2022 when prices rose during Russia’s ongoing invasion of Ukraine. It was extended in early 2023 and again later that year.
Labour leader Chris Hipkins didn’t express a view on whether the Government should cut prices but acknowledged the troubles it caused his party.
“Clearly the prices went back on in July [2023] and that’s about the time our polling went dramatically downwards, but there were other factors at play there,” he said.
“I’ll just say that our record is that we lowered fuel tax when the prices were at their peak.”
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
