Story: Balance of payments

Locking the pumps

Locking the pumps

A Wellington garage manager locks up his pumps in February 1974 during the first oil shock. As a result of the Yom Kippur Arab–Israeli war in October 1973, the Organization of the Petroleum Exporting Countries (OPEC) restricted the supply of oil. This increased the price over four-fold and created uncertainty about supply. New Zealand was faced with a massive impact on the balance of trade and the balance of payments, since oil was a significant portion of the country’s imports. Restrictions were placed on the sale of petrol and permits were required to buy it at the weekend.

Using this item

Alexander Turnbull Library, Dominion Post Collection (PAColl-7327)
Reference: EP-Energy-Petrol-service-stations-01

Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Mātauranga o Aotearoa, must be obtained before any re-use of this image.

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How to cite this page:

C. John McDermott and Rishab Sethi, 'Balance of payments - A brief history', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/photograph/23966/locking-the-pumps (accessed 12 November 2019)

Story by C. John McDermott and Rishab Sethi, published 11 Mar 2010