RNZ poll: Fuel crisis reignites, but public tepid on government's approach

As the fuel crisis reignites, poll numbers show the public is tepid on the government's approach - but are similarly sceptical about Labour doing a better job.

Iran blasted two tankers overnight after claiming to have closed the Strait of Hormuz, prompting New Zealand to call in ambassador Reza Nazar Ahar.

Donald Trump may have cancelled his plans for a protection fee, but the United States has also escalated attacks over the past few days.

With the AA warning people to fuel up before higher prices hit and energy expert David Keat predicting months of fighting still to come, New Zealanders will be dreading pain at the pump.

AA fuel spokesperson Terry Collins said the crisis would likely means higher prices across the board through higher inflation and curbing the recovery of business confidence.

With expectations of the price of 91 unleaded tipping over the $3/litre mark, the government's weekly fuel relief payment for low income families also seemed set to continue - great for those who need it, but coming at a cost to taxpayers and a government that is looking to cut wherever it can.

The latest RNZ-Reid Research poll asked New Zealanders to rate their level of approval of the government's response to the crisis initially spurred by the US attack on Iran in February.

Overall approval was 39.2 percent, with disapproval at 27.9 percent.

Relatively few felt particularly passionately though, with those saying they strongly approved or disapproved about the same - at 13.3 and 13.5 percent respectively.

"Neither approve nor disapprove", at 27.7 percent, was the most common selection for an answer, and a further 5.2 percent were unsure.

A further question - asking how Labour would have handled the situation - also showed ambivalence, with the largest share of 38.3 percent saying "about the same".

Slightly more - at 27 percent - said Labour would have done worse compared to the 25.7 percent who said the party would have done better.

Combined, it suggests the fuel crisis is unlikely to be a vote winner for either major party, and the continuation of the conflict and rising inflation will make it harder for National to sell its economic turnaround strategy.

The government's response to date includes the in-work tax credit, and increased mileage rates for care and support workers.

It also set out a fuel response plan containing four levels of increasing severity, secured a strategic diesel reserve through a deal with Z Energy and refurbishing unused tanks at Marsden Point, and temporarily aligned New Zealand's fuel standards with Australia's.

However, it did not match Australia's cuts to fuel excise duty and road user charges, with Treasury officials saying that would be poorly targeted and could undermine efforts to decrease fuel use.

Transport Minister Chris Bishop has also suggested fuel excise increases - the first since 2020 - set to kick in from January were unlikely during a fuel crisis, but has not confirmed their cancellation.