Shane Jones: Associate Energy Minister and Resources Minister on the Government's new Ministerial Oversight Group

The Government's working to stay ahead of the effects of the war in Iran.

Crude oil prices have topped $100 USD a barrel for the first time since 2022, and our petrol prices surged another 14 cents over the weekend.

An economic security Ministerial Oversight Group is being set up - to focus on fuel and supply chains.

Associate Energy Minister and Resources Minister Shane Jones says it'll need high-quality, regular information.

"In respect of logistics, supply lines and shipping arrangements, this needs to be stood up ASAP."

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Episode Transcript

Speaker 1 (00:00):
Good afternoon. Prices have finally started responding today in a
significant way to the US war on Iran. We're going
to start with oil prices. They have broken through the
one hundred US dollars marked today for the first time
since twenty twenty two. Now the national average at the
petrol pump is about two dollars sixty odd. We are
being worn to brace ourselves for three dollars a liter.
Associate Energy Minister and Resources Minister Shane Jones is with

(00:21):
US now.

Speaker 2 (00:21):
High Shane, Hi, Good afternoon, folks.

Speaker 1 (00:24):
The AA is warning that it may get as high
as four dollars a liter. Is that likely?

Speaker 2 (00:30):
Well, what we did as of today stood up a
responsible group of ministers with the best quality of advice
surrounding us. I don't want to jump to conclusions. We
did suffer price increases and the putin Ukraine hostilities broke out,
and we're just going to be very well prepared to
deal with any eventuality.

Speaker 1 (00:51):
Okay, this group of ministers, this Ministerial Oversight Group on
Economic security, with the focus on oil and gas, what
are you supposed to do? What are you looking at?

Speaker 2 (01:00):
Well, we need high quality, regular information, not only from
the big field users, but the fuel importers and obviously
our own bureaucracy. And also we need good quality taining
to access to fertilizer for our agricultural sector, and that's
also hampered by the closure of the strait. And on

(01:20):
top of that, we need high quality information and respect
of logistics, shipping supply lines and shipping arrangements. This needs
to be stood up asap.

Speaker 1 (01:33):
And what is the power that you guys will have
to affect any change.

Speaker 2 (01:38):
Well, there are a range of statutes, and Paris have
thought we should ever use them. But in the future,
if the situation really does deteriorate, then the Minister of
Resources of my good self we actually do have to
respond in the event that the International Energy Association requires

(01:59):
us to move towards a rationing model. But we don't
believe we're there in any man or of form.

Speaker 1 (02:06):
We've got what twenty eight days of oil in this country,
twenty nine days worth on ships. What happens after that?

Speaker 2 (02:14):
Well, you raise a damn good question. After the refinery
was closed down and we lost over three hundred and
fifty million elitter capacity to store additional fuel, we are
dependent on the just in time model, that is what
the oil companies and the labor government did to New

(02:35):
Zealand four or five years ago.

Speaker 1 (02:37):
Okay, but what happens after the twenty nine days worth
of oil on the ships gets here? Have we got
more on order?

Speaker 2 (02:44):
Yeah? We have a system which is administered through the
International Energy Association, where we have the ability to call
on fuel that is stored in Japan, America and various
other places, including an arrangement with Singapore that we can
call for some of their fuel to be released and
sent to New Zealand, but we have yet to exploit

(03:07):
that option.

Speaker 1 (03:08):
Do you support the decision not to cut the fuel tax?

Speaker 2 (03:13):
Oh, it's just ty hoe. I mean it was cut
in the past and any politician who cuts the text
funds are very difficult to re establish it. But I
think I if I understand, the Minister of Finances said, well,
we'll monitor it very closely. And look, if we got
to cut the fuel tax and you've got a whole
bunch of people doing the hacker they want four lane

(03:33):
highways everywhere, Well, the d's got to come from somewhere.

Speaker 1 (03:36):
Fair point, Shane, Thank you very much appreciated. Shane Jones,
Associate Energy Ministan Resources Minister for more from Hither Duplessy
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