Media release: Government missing opportunity to cut household fuel costs and strengthen national energy security

The government is wasting a good opportunity to take up initiatives that could enhance Aotearoa New Zealand's energy security and reduce fuel costs for households, according to public health experts.

In the latest Briefing from the Public Health Communication Centre, University of Otago Professor Nick Wilson and co-authors set out five practical interventions that could be implemented quickly in response to the current fuel crisis, while also delivering significant health and environmental benefits.

The researchers highlight improving access to public transport, expanding cycling infrastructure, subsidising e-bike purchases, reducing open road speed limits, and encouraging flexible work hours and working from home as key measures that would reduce fuel demand and lower household costs.

“This is a chance to take practical, evidence-based steps that can quickly reduce fuel demand while delivering lasting benefits for health, household budgets, and the environment,” Professor Wilson says.

“All five interventions we outline can be implemented relatively quickly, and most would reduce air pollution and emissions, while also improving people’s health through greater physical activity.”

Professor Wilson says the global fuel shock, linked to conflict in the Middle East, is already contributing to worldwide economic instability and increasing the risk of poverty and inequities, including in high-income countries. “Rather than the government relying on short-term financial relief that may blunt price signals to reduce fuel use, there is a strong case for measures that directly lower demand and support more efficient, healthier transport choices,” he says.

The Briefing finds that improving public transport is one of the most effective ways to reduce reliance on private vehicles, while also supporting equitable access to jobs, education, and healthcare.

Expanding safe cycling infrastructure and subsidising e-bikes could rapidly increase active transport, including among people who may otherwise be excluded due to distance, terrain, or fitness.

Reducing open road speed limits is identified as one of the fastest ways to cut fuel use and costs, alongside reducing road injuries, emissions, and travel stress.

Encouraging flexible work hours and voluntary working from home, where appropriate, could also reduce commuting demand, ease congestion, and lower transport-related costs.

While acknowledging upfront costs and political challenges, the authors outline funding options including cancelling the proposed LNG terminal, ending the $200 million gas exploration fund, and reprioritising the government’s transport spending.

Professor Wilson says coordinated action across central and local government, and across political parties, is needed. “Treating this fuel crisis as an opportunity for more future-focused policymaking could deliver enduring gains across energy security, health, environmental sustainability, and resilience,” he says.

The Briefing concludes that a constructive response now could help build momentum for longer-term changes, including improved urban design and greater electrification, while better preparing New Zealand for future shocks.