The Government will allow fuel that meets Australian criteria into the New Zealand market as pressures are felt at the pump over the effective closure of the Strait of Hormuz.

Associate Energy Minister Shane Jones said the decision would remove “unnecessary technical barriers” amid a tight global fuel market where “flexibility matters”.

It would help ensure New Zealand wasn’t excluded from supply Australia was accessing, and ultimately provide fuel importers with more options, he said.

“Countries that can access a wider range of shipments are better placed to keep fuel flowing.”

New Zealand’s fuel specifications were already very similar to Australia’s.

Fuel refined to Australian standards was compatible with New Zealand vehicles, the NZ First MP said. That fuel also met safety and quality expectations, he added.

New Zealand would not, however, be following Australia’s lead and relaxing standards to allow higher-sulphur fuel - although the Government would monitor whether further changes to fuel specifications could open up further supply channels if necessary.

This arrangement could remain in place for up to 12 months if needed.

Jones, along with Prime Minister Christopher Luxon and Finance Minister Nicola Willis, made the announcement after today’s Cabinet meeting.