New Zealand and Singapore formally signed a new fuel and food agreement in Singapore today, with Prime Minister Christopher Luxon and Singapore’s Prime Minister Lawrence Wong watching the signing. The deal is meant to keep important supplies moving between the two countries, even during a crisis. About a third of New Zealand’s fuel is refined in Singapore, making the agreement especially important for New Zealand drivers and businesses.
The agreement is sometimes called a “fuel-for-food” deal. It stops either government from placing export restrictions on an agreed list of essential goods, including fuel, food, building materials and medicines. Luxon said the deal showed that the two countries could rely on each other in uncertain times. Wong said it sent a message that trusted partners should not shut each other out when supplies are under pressure.
The leaders said the world had become more unsettled, with conflict in the Middle East affecting oil supplies and shipping routes. Wong warned that problems near the Strait of Hormuz could continue for months, even if fighting stopped soon. Luxon said Singapore’s refineries had found other sources of crude oil and that New Zealand’s fuel supply was not seen as being at risk. However, he said people were still feeling the effect of higher prices.
Both leaders said other countries could join the agreement if they met the same standards. ExportNZ’s Joshua Tan said the deal would not fix every fuel problem straight away, but it could help stop essential goods being blocked by sudden export rules. The agreement will be added to the existing New Zealand-Singapore free trade agreement after approval steps in both countries.
