New Zealand Government Plans to Ease Fuel Regulations to Boost Efficiency

The Government is preparing to remove or suspend regulatory barriers that make it harder for businesses and communities to cope with global fuel shocks, Minister for Regulation David Seymour and Minister for Transport Chris Bishop say.

New Zealand’s fuel supply is stable. We’re focussed on keeping it that way. There are few things as important to Kiwis as ensuring New Zealand’s fuel supply remains strong, Mr Seymour says.

This Government has responded well to the potential of conflict in the Middle East leading to fuel shortages. To build on our response this Government is listening to the people. The situation in the Middle East affects everyone.

Everyone should have a say on potential edicts issued by the Government which would affect them. Last month we called for businesses, fuel users, freight operators, and the wider public to report any regulatory barriers that might be hindering our response to global fuel uncertainty to the Red Tape Tipline.

Submissions to the Tipline the Government is refining include: Allowing some heavy vehicles to carry more per weight per trip, so less trips are required, improving fuel efficiency.

Bringing some license class weight thresholds for zero emission vehicles in line with similar diesel vehicles. For example, some electric utes are heavier than diesel ones, pushing them into a different weight threshold. This means people need a higher-class licence to drive them, which prevents uptake.

Relaxing time and access restrictions for over-dimension vehicles, enabling travel during off-peak time, shorter trips, and fuel savings.

Removing some restrictions on the routes that over-dimension vehicles can make and when they can travel. For example, there are sections of Auckland motorways and toll roads that they are not able to use meaning more fuel is burnt travelling less direct routes.

We are still in Phase 1 of the National Fuel Response Plan, but we don’t want a repeat of the Covid-19 lockdowns. Doing the work to boost fuel efficiency now helps ensure we can stay in Phase 1 for as long as possible, causing the least disruption to Kiwis, Mr Seymour says.

One of the consistent messages from the freight sector is that current weight restrictions – formally known as the Vehicle Dimensions and Mass (VDAM) Rule – are holding back efficiency, Mr Bishop says.

In the short term, even small increases in permitted loads could reduce the number of trips needed, saving time, lowering costs, and reducing fuel use.

We need to balance that with safety and network impacts, but there are sensible changes we can make that will lift productivity without compromising standards.

Fuel prices are already putting pressure on households and businesses, which is why this work matters. Getting ahead of the problem now helps reduce the impact if global conditions worsen.

All options are being developed so they can be implemented quickly if the Government moves to Phase 2, and we expect options to be ready by the end of this month if needed. If that becomes less likely, some options could be reworked into more permanent changes to reduce the impact of elevated fuel prices on the economy over the medium to long term.