As petrol prices soar past $3 a litre and the Government warns of possible rationing, regional leaders urge ministers to lean into public transport rather than working from home
The Greater Wellington Regional Council, Auckland Transport and the Canterbury Regional Council have written to the Government in their roles as metropolitan Public Transport Authorities, outlining the importance of public transport and the pivotal role that it can play in supporting any measures introduced by the Government.
Petrol stations across the country are seeing a surge of drivers filling up as fuel prices rise amid fears over the Iran war and potential shortages, with Prime Minister Christopher Luxon and Finance Minister Nicola Willis warning that NZ is now preparing for a possible 'prolonged' Iran conflict.
The letter to Finance Minister Nicola Willis, Transport Minister Chris Bishop and Associate Energy Minister Shane Jones comes as
initial data shows an increase of train and bus trips in the last two weeks, with 3% more people on board trains and buses compared to the same time last year — a strong reversal of the declines recently seen.
"Simply put, we need to move the most amount of people with the least amount of fuel and public transport is designed to do exactly that," Greater Wellington chair Daran Ponter said in a statement accompanying the letter.
As metropolitan Public Transport Authorities, Greater Wellington, Auckland Transport and Canterbury Regional Council's public transport services provide 89% of New Zealand's public transport services. Combined, in 2025 their services recorded over 141 million boardings.
The councils are asking for two specific government interventions: that public transport be allocated reserved diesel stocks if rationing becomes necessary, and that the government actively encourage the use of public transport rather than working from home.
"In our letter, we have suggested the Government actively encourage the use of public transport rather than working from home. Supporting and encouraging the use of public transport would limit any impact on the economy and productivity, and actively support those workers who are unable to work from home."
The push comes as
there are now 31,000 fewer Wellingtonians commuting each day than before Covid – what the Greater Wellington Regional Council has called a "permanent structural change". Rail use has never fully recovered to pre-Covid levels, and the council warns that if the trend continues, some harbour ferry services and duplicate train routes could face an uncertain future.
Electric fleets ready to ease pressure
The councils emphasised their growing electric fleets could help reduce fuel dependency.
Greater Wellington has a predominantly electric rail fleet and an electric ferry, and over 25% of its bus fleet is electric. Auckland Transport has a fully electric train fleet and 330 electric buses, 25% of fleet. In Canterbury, over 20% of the bus fleet is electric and these cover approximately 30% of the kilometres travelled.
The crisis has been triggered by the US-Israel war on Iran, with Iran's response including the closure of the Strait of Hormuz, a key transportation channel for Middle Eastern energy exports.
AA principal policy adviser Terry Collins told 1News crude oil prices had soared from under US$60 a barrel nine weeks ago to nearly US$93, driven by instability around the Strait of Hormuz, a chokepoint through which 20% of the world's oil flows. "If tankers can't get through, 20% of the world's crude isn't getting to refineries."
As of March 15, New Zealand's combined petrol, diesel and jet fuel stocks equated to about 49 days of cover nationwide, including fuel being held in storage and fuel on ships bound for New Zealand. That is slightly below the levels held on March 8, when New Zealand had a combined 52 days of cover.
Fare rise looms despite uptick
The timing is particularly fraught for Wellington commuters.
Metlink public transport fares will increase by 3.1 percent from 15 May, with the cost of a three zone trip increasing by 14 cents, bringing the peak adult Snapper fare to $4.67 for those travelling to the CBD from Miramar or Karori.
For Wairarapa passengers travelling by train from Masterton to Wellington, the fare will rise by 56 cents to $18.50 at peak times.
Regional council transport committee chairperson Ros Connolly acknowledged the challenging period for public transport.
"Wellington has had a hard road for public transport patronage over the last couple of years. We've had working from home, we've had quite high numbers of unemployment in the Wellington region, and the cost of living has all meant that our public transport numbers haven't been as high as we would have liked them to be. So year-on-year we've had about a 6 percent year-on-year decrease." But in recent weeks, "that number has absolutely turned around."
"We've definitely seen the impact of higher fuel prices on people's transport decisions … Unlike Auckland, we haven't quite topped our highest day since 2019, but we are getting close, and we're confident that in the next fortnight, if things continue to track the way they have, that we will see Wellington experience that record number."
Metlink group manager Samantha Gain said the organisation is preparing for possible disruptions.
"Metlink is working with operators to monitor any potential fuel impacts on services in line with its business continuity plan. Our preparations are thorough and extensive, and should this issue escalate, we will take direction from MBIE on a nationally coordinated approach and keep our passengers informed of any service changes."
From April, Metlink will launch e-pay, enabling people to pay with their VISA and Mastercard debit and credit cards as well as smart devices, making it easier for people to give public transport a go.
Government weighs response
Finance Minister Nicola Willis yesterday said the country was three or four weeks away from the possibility of serious fuel supply disruptions. To underline that she held an astonishingly frank 45-minute media briefing and is promising more updates before the end of the week.
Willis made clear the government was considering targeted support rather than blanket measures.
"Very clear in my mind is the mother potentially living in South Auckland, who has no choice but to use her car each day to get to her cleaning shift at the airport, there is not a bus available for her at that time, and who is facing acute income pressure."
Associate Energy Minister Shane Jones announced plans to temporarily allow fuel that meets Australian specifications to be supplied to the New Zealand market. "In a tight global fuel market, flexibility matters. Countries that can access a wider range of shipments are better placed to keep fuel flowing. This decision removes unnecessary technical barriers and helps ensure New Zealand isn't excluded from available supply our neighbours across the Tasman are accessing," Mr Jones said. The temporary alignment will open up more options for fuel importers by allowing fuel refined to Australian specifications to be supplied domestically.
The Ministerial group includes Willis, Shane Jones, Simon Watts and Brooke van Velden, while Chris Bishop sat in on yesterday's meeting.
Cabinet discussions on the fuel crisis are expected to continue throughout the week.
For Porirua residents, many of whom rely on rail and bus connections into Wellington city, the change is already being felt during peak travel times.
Similar increases were being seen nationwide, with public transport use up 3% in Wellington, 2.2% in Christchurch, and 4% in Dunedin. Councils say demand is likely to continue rising.
As the regional councils' letter makes plain, public transport can move far more people using significantly less fuel than private vehicles — and that matters when fuel supply is uncertain. Whether the government will heed their call for reserved diesel stocks and a push away from working from home remains to be seen. But with fuel prices continuing their relentless climb and supply chains under pressure, the humble bus and train may prove to be Wellington's most valuable assets in navigating the crisis ahead.
