The New Zealand government is taking steps to strengthen the country’s fuel resilience to protect against potential disruptions, Associate Energy Minister Shane Jones announced.
Recognising the country’s vulnerability as a nation that imports almost all of its engine fuels, Jones said it was important to ensure fuel security to safeguard the economy and keep essential services running smoothly.
Current fuel stockholding requirements mandate that, starting January 2025, fuel importers must maintain a minimum reserve of 28 days for petrol, 24 days for jet fuel, and 21 days for diesel.
However, Jones expressed concerns that the existing diesel and jet fuel reserves are insufficient, citing diesel’s critical role in transporting goods and people across the country.
He is seeking feedback on increasing diesel reserves to 28 days and plans to introduce regulations mandating jet fuel companies to hold adequate stocks near Auckland Airport.
These measures aim to prevent disruptions like those seen during the 2017 jet fuel shortage, which caused international flight diversions. Jones also highlighted the government’s commitment to bolstering New Zealand’s energy security by lifting the ban on oil and gas exploration.
Read the discussion document on increasing diesel reserves from 21 to 28 days and have your say here. Consultation closes on December 6.
Image credit: Ave Calvar
One arm of the state creates a problem, the other arm of the state attempts a solution, but the people are always left worst off. Rinse, repeat.