Flashback to carless days
A DigitalNZ Story by Zokoroa
How oil supply disruptions led to carless days from 30 July 1979
Cars, Vehicles, Fuel, Petrol, Oil, Gas, Natural gas, Conservation, Carless days
Since the 1860s, New Zealand has been dependent on the importation of oil as its main source of supply. The oil was in a refined form until the Government built the oil refinery at Marsden Point in 1964 and crude oil imports began. From late 1973 to 1979, there were crude oil supply disruptions in Arab countries arising from the Arab-Israeli War (1973) and the Iranian revolution against its monarchy (1978-1979). The shortages of fuel and rising oil prices led New Zealand to introduce fuel-saving measures, which were extended on 30 July 1979 to include the carless days scheme until it was suspended from 13 May 1980.
Arabian oil supply disruptions led to fuel restrictions in NZ in 1973-74 & 1979-80, & carless days began on 30 July 1979
Oil was embargoed to Israel's supporters in 1973 Arab-Israeli War & Iran's oil workers striked during Sept 1978-Feb 1979
Alexander Turnbull Library
On 30 July 1979, to further reduce petrol consumption, the Govt introduced carless days
Owners of vehicles under 1995 kg (4400 lbs) weight had to nominate a day of the week they wouldn't use the vehicle
Alexander Turnbull Library
Owners had to apply for a sticker for their nominated day or an X sticker for an exemption
Exemptions were given for urgent business, rural dwellers, & some professions, e.g. taxis, govt vehicles & farm vehicles
Massey University
The coloured sticker from the Post Office for nominated carless day of the week had to be displayed on the windscreen
If the sticker was not displayed or the car driven on its carless day, the owner could be fined up to $400
Manatū Taonga, the Ministry for Culture and Heritage
Households with more than one car would choose different days for each vehicle
Thursday was the most frequently chosen carless day. A black market for exemption stickers & imitations also occurred.
Alexander Turnbull Library
Some people began riding bicycles & small motorcycles which were exempt from the carless days scheme
(Cartoon: People on roller skates, a go-cart, a scooter, bicycles, and a horse)
Alexander Turnbull Library
Some owners abandoned their car rather than go through the process to get an exemption sticker or WOF or re-register
(Image (c.31 July 1979): Rows of abandoned cars gathered by Wellington City Council to be sold by auction)
Alexander Turnbull Library
Sunday News (3 Feb 1980) article on reaction of members of the public to carless days
It was estimated c.0.2% of those breaking carless days rules were caught & there were 3,136 successful prosecutions
Archives New Zealand Te Rua Mahara o te Kāwanatanga
On 13 May 1980, carless day scheme was suspended with threat it could be reimposed; & finally revoked from 22 Dec 1980
Auckland Libraries
Govt estimated carless days reduced petrol consumption by 3%, which a petrol price increase of 87.5% would have achieved
By May 1980, 43% of registered vehicles had exemption stickers granted which decreased level of petrol saved
Christchurch City Libraries
On 23 July 1981, the Petroleum Demand Restraint Act 1981 enabled the future invoking of restrictions
The Act authorised regulation-making for restraining demand, reducing consumption, or ensuring equitable distribution
HathiTrust
Backstory:
(1) 1860s-1970s: NZ's dependency on imported oil (2) 1973: Arab-Israeli war led to NZ's first oil crisis & fuel-saving measures (3) 1978: Iranian revolution led to NZ's second oil crisis (4) Govt introduced carless day scheme on 30 July 1979 until midnight of 12 May 1980 (5) Memories of the carless days
(1) 1860s-1970s: NZ's dependency on imported oil
The following summarises NZ's ongoing dependence on imported oil since the 1860s despite the opening of NZ's first oil well in 1913 at New Plymouth and the discovery of the Kāpuni field's gas and condensate (light oil) in Taranaki in 1958. By the mid-1950s, the use of oil products (e.g. petrol, diesel, aviation fuel, and kerosine) had doubled and supplied more of NZ's energy than any other source including coal and coal gas. The Marsden Point Refinery was opened on 30 May 1964 to reduce the costs of imported processed oil by refining imported crude oil. However, plans for the expansion of the Refinery were delayed by the outbreak of the Arab-Israeli War in October 1973.
Since the 1860s, NZ had been importing casks of oil from overseas which reached 5 million litres per annum by 1890
National Library of New Zealand
From 1896, overseas oil companies began to operate in NZ: Vacuum Oil Co (New York) started 1896 & became Mobil in 1966
Plus: Shell (1912), Texaco (started 1920 & rebranded as Caltex in 1936), & BP (1946)
Alexander Turnbull Library
Petrol (known as benzine) & kerosene were first shipped in drums & tins & stored in warehouses
It was sold by blacksmiths, grocers, & stock and station agents in 4-gallon (18-litre) tins & larger drums
Alexander Turnbull Library
From 1913, oil was commercially processed in NZ for first time since being first discovered in 1865 at New Plymouth
But the quantities of oil from Moturoa oilfield were sporadic & refinery closed in 1914. Later, another opened in 1931.
Manatū Taonga, the Ministry for Culture and Heritage
From 1926, the larger oil companies began to use tankers to import benzine (petrol) which was stored in portside tanks
Auckland Libraries
The benzine was then distributed in tankers by road & rail
Auckland Libraries
The first petrol pumps (‘bowsers’) began to be installed in 1926 by the larger petrol companies setting up their outlets
The bowsers' petrol was drawn from underground tanks
Auckland Libraries
From 1933, NZ-owned oil company Europa began in competition with other companies & sold oil imported from Soviet Union
Europa was started by the Todd family in Dunedin. In 1972 British Petroleum NZ acquired a 60% interest in the company.
Canterbury Photography Museum
The Petroleum Act 1937 encouraged overseas companies to look for oil & gas
The University of Auckland Library
At the outbreak of WWII in Sept 1939, the NZ Govt issued petrol ration coupons which were used until May 1950
From Jan 1940, petrol limit was 8-12 gallons a month depending on car size, & was reduced to 2 gallons in 1942
Auckland War Memorial Museum Tāmaki Paenga Hira
The Economic Stabilisation Act (19 Nov 1948) gave Cabinet the power to make regulations deemed "necessary or expedient"
This included "the stabilization, control, and adjustment of prices of goods and services"
HathiTrust
In 1940s, coal & coal gas supplied 40% of NZ's energy but cost increases in 1950s led to increased use of refined oil
Refined fuel products used by industries, power stations & households included petrol, aviation fuel, diesel & kerosine
The Fletcher Trust
From the early 1950s, the petrol companies began to contract petrol stations to sell only their brand
Museum of New Zealand Te Papa Tongarewa
By mid-1950s, use of oil had doubled & supplied more of NZ's energy than any other source
From 1944-1954, oil consumed increased from 30 petajoules per year to 59 (Petajoule = 28 million litres of petrol)
Alexander Turnbull Library
To reduce cost of imported oil, the Govt decided in 1956 to build a refinery & Marsden Point near Whāngarei was chosen
Instead of importing processed oil, NZ to import crude oil which would be processed at the refinery
The Fletcher Trust
In 1959, explorations for oil & gas led to the finding of the Kāpuni field's gas & condensate (light oil)
During 1962-63, 3 more wells were drilled by Todd Brothers, Shell & BP. The processing plant was built during 1969-1970.
Archives New Zealand Te Rua Mahara o te Kāwanatanga
Construction of the Marsden Point Refinery began in 1962 & it was officially opened on 30 May 1964
The refinery which cost $10m to build was designed to process up to 65,000 barrels a day
Alexander Turnbull Library
The Govt also encouraged offshore oil & gas finds, & passed the Continental Shelf Act 1964 to delineate NZ's boundaries
The Govt then began issuing exploration licences to drill holes offshore to search for oil & gas
National Library of New Zealand
In 1969, gas & condensate (light oil) were found in Māui field by Discoverer II ship brought to NZ by Todd, BP & Shell
Size of the Māui field, sited off the Taranaki coast, was 8 times larger than the Kāpuni gas field
NZ On Screen
In 1970, the Kāpuni processing plant began operating with the gas & condensate (light oil) fed via pipes from the wells
The condensate was separated from the gas & sent by pipeline to Port Taranaki & shipped to Marsden Point Oil Refinery
Archives New Zealand Te Rua Mahara o te Kāwanatanga
In May 1973, the Govt approved $160m expansion for Marsden Point; & then the 1st global oil shock occurred later in 1973
Archives New Zealand Te Rua Mahara o te Kāwanatanga
(2) 1973: Arab-Israeli war led to NZ's first oil crisis & fuel-saving measures
During the Arab-Israeli War fought between 6-25 October 1973, an embargo on oil supplies was imposed on the United States and other countries that had supported Israel. The embargo, which was placed by Arab members of the Organization of Petroleum Exporting Countries (OPEC) on 19 October 1973, was lifted from the US on 18 March 1974, but continued for longer with the other countries. The shortages of fuel led to rising oil prices - whereas in 1972, the price was $2.48 a barrel, in 1974, it was $11.58 a barrel. Consequently, the NZ Government introduced fuel-saving measures.
From Oct 1973 - March 1974, NZ experienced its first major oil crisis when supplies were embargoed from Arab states
The embargo had been placed on US & other countries who'd supported Israel during the Arab-Israeli war (6-25 Oct)
Tauranga City Libraries
In Nov 1973, the media reported on measures to save petrol from the Mayor of Timaru & the Automobile Association
(Article in Timaru Herald: Mayor is photographed riding his bicycle)
Timaru District Libraries
In Dec 1973, the open road speed was reduced from 100km/h to 80km/h & road signs also encouraged fuel economies
Tauranga City Libraries
Councils also promoted the use of public transport
Timaru District Libraries
Announcements that petrol prices to rise due to dwindling supplies resulted in motorists queuing to fill their cars
Whereas in 1972, the price was $2.48 a barrel, it rose in 1974 to $11.58 a barrel. (Image: May 1975)
Christchurch City Libraries
Cartoon (5 Dec 1973): "Cops are considering reintroducing bicycles to help conserve petrol"
Alexander Turnbull Library
Cartoon (17 Dec 1973): Fuel crisis had Wellington Councillor pondering type of bus to use in future - trolley or diesel?
Alexander Turnbull Library
Between 1974-1979, the Māui Platform was constructed to extract natural gas & use the condensate (light oil) as fuel
The Govt intended to burn Māui gas to generate electricity & extract the accompanying condensate for use as fuel
Manatū Taonga, the Ministry for Culture and Heritage
Sept 1974: NZ's first visit by the Shah of Iran
During September 1974, NZ was visited for the first time by Iran's monarch, Mohammed Reza Pahlavi, known as The Shah, who'd succeeded his father in 1941. The purpose was to form a trade agreement between the two countries for Iran to receive supplies of food and other goods and for NZ to received oil and other commodities. The Trade Agreement between the Government of New Zealand and the Imperial Government of Iran was signed on 30 September 1978 "to facilitate, strengthen and diversify trade" and enacted from 1 January 1980.
In Sept 1974, the Shah of Iran visited NZ for talks on a trade agreement on exports & imports, including oil for NZ
The Trade Agreement signed on 30 Sept 1974 was introduced on 1 Jan 1975 "to facilitate, strengthen and diversify trade"
NZ On Screen
Nov 1974: International Energy Agency formed to coordinate emergency oil supplies
On 15 November 1974, the International Energy Agency (IEA) formed under the umbrella of the OECD to coordinate measures amongst oil importing countries if oil supply emergencies arose in the future. Under the International Energy Program Agreement (18 Nov 1974), member countries, including NZ, were required to hold 90 days of oil stocks from net imports of the previous calendar year. If a major supply event occurred, each country was to release its oil stocks, place restraints on demand, switch to using other fuels, increase domestic production of oil, and share available oil, if necessary. To achieve the 90-day requirement, the NZ Government arranged for commercial stocks owned by oil companies to be held within NZ, and organised contracts with other countries for reserve stocks. NZ's obligations were set out in the International Energy Agreement Act 1976 which was assented on 14 December 1976.
In Nov 1974, OECD's International Energy Agency (IEA) formed & countries to hold 90 days of reserve oil for emergencies
NZ arranged for oil companies to hold stocks in NZ & also set up contracts with other countries for reserve stocks
Alexander Turnbull Library
NZ's obligations under the IEA Agreement were later set out in the International Energy Agreement Act (14 Dec 1976)
HathiTrust
1975-1977: NZ entering into a recession due to cost of oil
By 1975, NZ was entering into a recession due to cost of oil & a TV campaign began using actors to urge fuel-saving
Image: NZOnScreen video (1975): English actor Edward Woodward encourages New Zealanders to conserve petrol (18 secs)
NZ On Screen
By 1976, Inflation reached nearly 18% which led to spiralling wage demands & increases in unemployment
A Task Force on Economic and Social Planning (1976) identified the need for a more efficient and flexible economy
Alexander Turnbull Library
During 1977, the high cost of running a car depicted in cartoon where "finest NZ cheese" used to fill the tank (29 Sep)
Alexander Turnbull Library
(3) 1978: Iranian revolution led to NZ's second oil crisis
During 1978, there was an uprising with street demonstrations against Iran's monarch, The Shah. The opposition against the monarchy was coordinated by Muslim cleric Ruhollah Khomeini who was living in exile in Iraq and then moved to Paris. He was a former professor of philosophy who was exiled from Iran in 1964 after speaking out against the Shah's economic, industrial, military and social reform programme to modernise Iran. The protests led to martial law being imposed on 8 September 1978 and troops opened fire against demonstrators in Tehrān. Government workers began to strike as did workers in the oil industry.
Four waves of strikes spread between Iran's oil refineries and oil fields, beginning on 8 September 1978 and ending on 17 February 1979. Iran's oil production reduced from 6 million barrels per day on 23 August 1978 to about 1 million by 30 October; which led to a shortage of petrol supplies in NZ and other countries. Iran's oil production increased gradually to 5 million barrels per day on 27 November and peaked at 6 million barrels on 3 December, but then dropped off again to less than 1 million barrels by 30 December 1978 and 21 January 1979. (Source: Jafari, P. (2018). Fluid History: Oil Workers and the Iranian Revolution.)
During 1978, there was an Iranian uprising against the monarch, The Shah, and his reform programme to modernise Iran
(RNZ: Checkpoint ( (10 Feb 2009: 3:05min) revisits the uprising which led to the overthrow of The Shah)
Radio New Zealand
On 1 Sept 1978, PM Rob Muldoon announced NZ to be made as self-sufficient as possible with increased use in natural gas
The cost of importing oil was costing nearly 4% of gross national product
Alexander Turnbull Library
In 1978, the Liquid Fuels Trust Board was formed to reduce reliance on imported fuels by using Māui gas, CNG & LPG
The Board researched use of Māui gas discovered off-shore in 1968 to generate electricity & extract condensate for fuel
National Library of New Zealand
During 1979, oil supplies in Iran continued to be disrupted
On 16 January 1979, the Shah left Iran on what was officially called a "holiday" and appointed Prime Minister Shahpur Bakhtiar to govern during his absence. Ruhollah Khomeini returned to Iran from exile on 1 February which led to one million demonstrating their support in Tehrān. When Iran’s armed forces declared their neutrality on 11 February, Bakhtiar stepped down as Prime Minister and left Iran; thus ending the monarchy's reign. Oil supplies continued to be disrupted with NZ receiving approximately 10-15% less oil during March. On 1 April 1979, following a referendum, Khomeini issued a declaration of an Islamic Republic in Iran. After the new constitution was adopted in November, Khomeini assumed leadership as the Supreme Leader of Iran and Abolhassan Banisadr was elected the first President on 4 February 1980. By 1980, the price of oil in NZ was $36.83 a barrel - a fifteen-fold increase on the 1972 price of $2.48 a barrel prior to the Arab-Israeli War.
During the overthrow of the Iran monarchy in Jan-Feb 1979, petrol supplies continued to be disrupted
On 11 Feb the monarchy's reign ended & Ruhollah Khomeini declared an Islamic Republic in Iran on 1 April 1979
Tauranga City Libraries
To reduce petrol consumption, NZ Govt continued the open road speed limit of 80km/h introduced in Dec 1973
(The 80km/h was later raised in 1985 back to 100km/h)
TV3
Then on 1 March 1979, the Govt began a publicity campaign to cut petrol consumption by 10% or face having car-less days
The Ministry of Energy placed advertisements in newspapers & messages on TV & the radio to encourage voluntary restraint
Puke Ariki
The Govt raised the tax on the purchase of new larger-engine cars & lowered it for small-engine cars
Auckland Libraries
Late March 1979: NZ Herald survey on petrol-saving measures
At the end of March 1979, a survey on petrol-saving measures with 2200 persons aged 15 and older was conducted by the New Zealand Herald with the National Research Bureau. The survey asked which method of controlling petrol consumption would cause the least inconvenience. The results showed the top three preferences were: Rationing (scored 32% support); Weekend petrol station closing (29%), and Carless days (17%). Other preferences were: Harsher penalties for exceeding speed limits (11%); Price of petrol raised above $2 a gallon (3%); Restricted supplies available on a “first come, first served” basis (3%); Other choices (3% of which the main choice was some restriction on the size of cars or on the number of cars available to each household); and Don't know (2%).
Source: Press (9 May 1979, p.6), "Rationing ‘the least trouble?")
Petrol-saving initiatives continued during 1979
On 2 May 1979, Govt approved the expansion of the Marsden Point Oil Refinery over next 3 years for c.$350 million
The economic benefits were stated as savings of $150 to $180 million dollars a year in oil prices
Archives New Zealand Te Rua Mahara o te Kāwanatanga
(4) Govt introduced carless day scheme on 30 July 1979 until midnight of 12 May 1980
Bill Birch, who was the Minister of Energy from 1978-1984, stated later in 2017 that the Government had considered either rationing petrol or introducing carless days: "If it had been a long-term issue probably rationing would have been inevitable. We did not think it was going to be long term, so carless days was an alternative option. It was less regulated than rationing, and could be introduced quicker, and removed quicker." (Source: Laura Dooney (29 July 2017), "Flashback: Government enforces carless days amid oil shortage", Stuff.co.nz)
The carless days scheme did not require approval from Parliament as the Cabinet could exercise its powers under the Economic Stabilisation Act 1948 to introduce measures to regulate the marketing of goods for the economic stabilization of NZ.
The Govt considered rationing petrol but chose carless days as requiring less regulation & easier to commence & finish
The Govt exercised its powers under the Economic Stabilisation Act 1948 to introduce carless days to reduce fuel usage
Te Hikoi Museum
Car-owners to nominate a day of the week or apply for an exemption
Car owners had to apply for a sticker of their nominated day of the week. They could also apply for an 'X' sticker for an exemption to use a vehicle for work purposes only, which required answering yes/no to four questions:
(I) Is public transport (other than taxis) to and from your place of work readily available, in relation to your starting and finishing times, on your carless day?
(2) Is another family vehicle available?
(3) Could you travel to and from work with a fellow employee, friend, or neighbour on your carless day?
(4) Does your employer provide you with transport?
Those who answered no to all four questions were eligible to have an exemption sticker. If the answer to one or more questions was yes, an application could still be made to the Ministry of Energy.
Those who lived in rural areas were exempted due to less availability of public transport. Certain professions were also exempted (e.g. taxis, government vehicles, armed forces and farm transport), as were those who required a vehicle for urgent business. A black market for exemption stickers and imitations of stickers also occurred.
On 30 July 1979, Govt introduced carless days & a sticker for nominated day of week or an 'X' exemption to be displayed
(Article: NZ History (25 July 2017): "Carless days introduced")
Manatū Taonga, the Ministry for Culture and Heritage
Increased fuel costs led to increased transport costs
To help conserve petrol, CNG (compressed natural gas) & LPG (liquid petroleum gas) were promoted to vehicle users
Archives New Zealand Te Rua Mahara o te Kāwanatanga
Interest free loans were provided for conversion of vehicles to run on gas & subsidies provided for refuelling outlets
(Image: Taxi driver filling his vehicle with CNG, 4 April 1979)
Alexander Turnbull Library
On 1 Aug 1979, Air NZ permitted to increase domestic airfares & freight fares by 10% to recover increased fuel costs
Permission to recover the aviation fuel costs was granted by the Air Services Licensing Authority
MOTAT
Carless day scheme suspended from 13 May 1980 & revoked from 22 Dec 1980
From 13 May 1980, carless day scheme suspended with threat it could be reimposed; & was revoked from 22 Dec 1980
Govt estimated carless days reduced petrol consumption by 3%, which a petrol price increase of 87.5% would have achieved
Howick Historical Village
In Sept 1980, Govt introduced further energy-saving strategies
On 28 Aug 1980, price of a litre of premium petrol rose from 38.6c to 39.5c & for standard petrol from 37.1c to 38c
Waimate Museum and Archives
In early Sept 1980, Liquid Fuels Trust Board released its report on energy-saving using Māui gas, CNG & LPG
The Board's proposals to reduce reliance on imported fuels received the Govt's financial support
Auckland Libraries
On 13 Sept 1980, Govt announced Māui gas to replace over 50% of oil imports by 1987 as recommended by the Board
Manatū Taonga, the Ministry for Culture and Heritage
Consequently, "Think Big" projects for petrochemical & energy-related projects were initiated by the Government
Projects included a methanol plant, synthetic fuels plant, refinery expansion, a second Māui platform, & the Clyde Dam
Alexander Turnbull Library
Govt's strategies in case of future oil supply disruptions
On 23 July 1981, the Petroleum Demand Restraint Act 1981 enabled the future invoking of restrictions
Alexander Turnbull Library
In July 2008, the Govt released its "Oil emergency response strategy" for oil supply disruptions
Ministry of Economic Development's document was to inform the Govt’s options for responding in an oil emergency only
Alexander Turnbull Library
In 2012, the National Fuel Plan was released which was updated in March 2020
It provides a framework for implementing government powers under the Petroleum Demand Restraint Act 1981
Figure.NZ
(5) Memories of the carless days
RNZ (11 Aug 2014) NZ Retro - The Year 1980 (36.51 min)
Memories of when Carless Days scheme was abandoned & as a result petrol went up 4 cents a litre to 52 cents
Radio New Zealand
RNZ (8 Aug 2019): The Panel on "Carless days: should they make a comeback?" (4.42 min)
Radio New Zealand
Manawatū Standard (8 July 2023): "Carless days: Memories of an earlier fuel crises"
Palmerston North City Library
Find out more:
Britannica: Iranian Revolution, URL: https://www.britannica.com/event/Iranian-Revolution
Megan Cook, 'Energy supply and use', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/energy-supply-and-use
Reserve Bank of NZ (Jan-Feb 1980): New Zealand Economic Chronology 1979
Papers Past: Press (1 March 1979): "Campaign carries blunt message — use less petrol" (p.2)
Papers Past: Press (9 May 1979), "Rationing ‘the least trouble?"(p.6)
Stuff.co.nz: David Linklater (20 Sept 2019): "Friday flashback: remember the oil crisis and carless days?"
Wikipedia (20 Feb 2024): Carless days in New Zealand
Wikipedia: 1973 oil crisis
This DigitalNZ story was compiled in July 2024