Australia, New Zealand: Oceania severely affected by the oil shock

The oil shock triggered by the war in the Middle East is now striking Oceania full force after the de facto closure of the Strait of Hormuz, the strategic artery through which nearly one-fifth of global oil flows usually transit.

“Australia, New Zealand: Oceania heavily hit by the oil shock The oil shock triggered by the war in the Middle East is now striking Oceania full force”

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Supply tensions, higher fuel prices and disruptions to air transport are spreading rapidly in Australia and New Zealand.

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The region is highly dependent on energy imports, which amplifies the economic consequences.

In Canberra the government temporarily relaxed fuel regulations to increase domestic volumes.

Energy Minister Chris Bowen announced the country would temporarily allow "higher sulfur levels for the next 60 days," an exceptional measure intended to free up more gasoline.

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According to him, "this will add around 100 million new liters per month to Australian domestic petrol supplies that would otherwise have been exported," and nearly 200 million additional liters could be injected over the next two months.

Oil company Ampol agreed to redirect these volumes to stressed regions and the wholesale market to ensure supply for priority sectors such as agriculture, fishing and local authorities.

Treasurer Jim Chalmers said Australia has "enough fuel," while acknowledging logistical difficulties in rural areas.

The initiative is part of the IEA coordinated effort whose 32 members decided to put 400 million barrels on the market.

Economic effects are already visible, particularly in commercial aviation.

“Australia, New Zealand: Oceania heavily hit by the oil shock The oil shock triggered by the war in the Middle East is now striking Oceania full force”

@latribune

National carrier Qantas announced it will "increase its fares this week because of rising costs, notably significant increases in the price of jet fuel."

Qantas said increases should vary by destination but would be about 5% on international routes.

The airline said jet fuel price volatility "has risen by up to 150% over the past two weeks" and, despite hedging measures, this is leading to higher costs for the entire group.

New Zealand faces a more delicate situation given strong dependence on hydrocarbon imports.

Finance Minister Nicola Willis confirmed discussions on using old laws to limit car use, including possible "car-free days" forcing motorists to leave their vehicles one day per week.

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Those texts also allow for a coupon system to ration fuel sales and were applied between 1979 and 1980 after the Iranian Revolution.

Air New Zealand announced the cancellation of 1,100 flights over the next two months, about 5% of its schedule, affecting nearly 44,000 passengers mainly on domestic routes.

These developments underscore how island countries far from major production centres see dependence on oil imports amplify the effects of the global crisis.