New Zealand authorities announced on Thursday, 12 March 2026, that they are considering invoking decades-old legislation to restrict vehicle use if national fuel reserves decline further due to the escalating conflict in the Middle East. The war erupted on 28 February following U.S. and Israeli strikes against Iran, triggering a de facto blockade of the Strait of Hormuz—the critical maritime chokepoint through which roughly one-fifth of the world’s oil and liquefied natural gas normally flows.
Emergency Measures from the 1970s
According to New Zealand Finance Minister Nicola Willis, government officials have held discussions about reinstating provisions from laws dating back to the 1970s. These include mandating a weekly ‘no-car day’ for private vehicle owners and authorising the issuance of fuel rationing coupons. Such measures were last enforced between July 1979 and May 1980 during the Iranian Revolution—a period marked by global oil shortages and soaring prices.
Oil prices have surged again, briefly exceeding $100 per barrel—though Brent crude has since eased to around $97. New Zealand, heavily reliant on imported fuels, is feeling the pressure: gasoline prices have risen nearly 10% since the conflict began, while diesel prices have jumped over 20%, according to fuel price monitor Gaspy.
Air New Zealand Cuts Flights Amid Soaring Jet Fuel Costs
Meanwhile, Air New Zealand—the country’s state-owned flag carrier—announced today it will cancel 1,100 flights over the next two months, mostly domestic services, citing sharply increased jet fuel (kerosene) costs. Approximately 5% of the airline’s scheduled flights will be axed, affecting an estimated 44,000 passengers.
Nikhil Ravisanke, CEO of Air New Zealand, explained that kerosene typically costs around $85 per barrel but has now doubled in price due to the Middle East crisis. ‘Given this unprecedented volatility in jet fuel pricing, airlines worldwide are adjusting fares and flight schedules to manage the impact of this significant cost increase,’ he said. He added that the cancellations aim to maintain competitive ticket prices and improve fuel efficiency across the network.