Gasoline prices: Australia lowers quality standards, New Zealand wants to limit vehicle use

These are two radically different choices in the face of soaring gasoline prices due to the war in the Middle East. In Oceania, Australia will reduce quality standards in order to increase the quantity of product on the market; Conversely, New Zealand wants to put restrictions on the use of vehicles to reduce demand for oil. On the one hand it is a question of maintaining a supply at the correct price, on the other hand of reducing demand.

With the lowering of quality criteria, Australia hopes to inject 200 million liters into the domestic market over the next two months. Concretely, the country will temporarily authorize “higher sulfur levels for the next 60 days,” Energy Minister Chris Bowen said this Thursday. Sulfur levels are usually subject to regulation to limit air pollution. “This will add a new 100 million liters per month to Australia’s domestic gasoline supply, which would otherwise have been exported. »

The oil company Ampol has agreed to direct these liters to areas of the country experiencing shortages and to the wholesale market. This involves providing priority to farmers, fishermen and local communities. The country, very dependent on oil imports, has seen a jump in fuel prices since the start of the war on February 28. The government has accused retailers of unfairly raising prices.

According to Australia’s Treasurer, Jim Chalmers, the minister responsible for the federal budget, the country has “enough fuel.” But there are supply problems, particularly in rural areas.

The 32 countries of the International Energy Agency (IEA), including Australia, announced on Wednesday an unprecedented joint effort to put 400 million barrels on the market. Canberra, the Australian capital, has clarified that its contribution will focus on its domestic market.

One car-free day per week

New Zealand authorities have said they will consider resorting to decades-old laws restricting vehicle use if fuel supplies dwindle. According to Finance Minister Nicola Willis, discussions have been held over the possibility of legislation requiring car owners to designate one day per week when they do not use their vehicles.

They also allow the government to authorize the sale of coupons to restrict fuel use. “Car-free days” were in effect from July 1979 to May 1980, after the Iranian revolution.

New Zealand relies heavily on imports for its fuel supply. The average price of gasoline has increased by almost 10% since the start of the war, and that of diesel by more than 20%. New Zealand’s national airline has already canceled 1,100 flights over the next two months.