New Zealand’s in-country fuel reserves have reached some of their highest levels since the start of the Middle East crisis, although the pipeline of fuel currently on the water is thinning.
Current Fuel Stock Levels
According to the latest update from the Ministry of Business, Innovation and Employment (MBIE), fuel reserves have increased across all three primary types. Total petrol stocks now stand at 52.8 days of cover, up from 51.8 days in the previous update.
Diesel stocks rose to 46.1 days from 41.3, while jet fuel climbed to 49.1 days from 45.7. Onshore stocks specifically were at their highest levels in weeks, with 36.4 days of petrol, 27.5 days of diesel, and 31.8 days of jet fuel held onshore.
Thinning Pipeline and Shipping Trends
Despite high onshore reserves, the amount of fuel on ships heading to New Zealand has been declining for weeks. On-water petrol stocks fell from a peak of 34.7 days in early April to 16.5 days.
Similarly, diesel on the water dropped from 34.0 to 18.7 days, and jet fuel decreased from 25.6 to 17.3 days. Currently, ten ships are carrying fuel to the country, with four inside the exclusive economic zone and six others up to three weeks away.
Energy officials have stated these movements reflect routine variations and usual shipping patterns. An MBIE spokesperson expressed optimism regarding confirmed orders through June and July, noting that the supply chain is operating smoothly.
Strategic Buffers and “Insurance Policies”
To further secure supplies, the Government announced a deal with Z Energy to procure additional diesel. Finance Minister Nicola Willis described this move as an “insurance policy” to prevent the country from reaching higher phases of its fuel response plan.
“What we have is the backup buffer. It’s like the money in the piggy bank that has the masking tape all over it. It’s only there if we really, really require it on a rainy day,” Willis said.
The extra diesel will be stored at Channel Infrastructure’s site at Marsden Point in Northland. The Government has signed off on up to $21.6 million for extra storage capacity, which is expected to be ready for deliveries in late June or early July.
While Z Energy will procure and manage the diesel, the Crown will control its release. Associate Energy Minister Shane Jones noted that the proposal provided “value for money alongside practical flexibility.”
Diplomatic and Operational Responses
Prime Minister Christopher Luxon is scheduled to travel to Singapore this Sunday to meet counterpart Lawrence Wong. The goal is to sign a trade and essential supplies agreement to ensure Singapore does not impose export restrictions on fuel to New Zealand.
The Prime Minister similarly noted that South Korea has assured New Zealand of its plans to continue supplying fuel. These diplomatic efforts follow an April 15 update that flagged congestion at Singapore’s loading hub.
Regulation Minister David Seymour and Transport Minister Chris Bishop are developing trucking and freight rule changes to reduce fuel consumption. These potential changes include easing delivery curfews and allowing some heavy vehicles to carry more weight per trip to reduce the total number of journeys required.
Frequently Asked Questions
Why is the government procuring 90 million additional litres of diesel?
The additional diesel serves as a strategic buffer and “insurance policy” that would only be used in worst-case scenarios to prevent the country from entering higher phases of the fuel response plan.
Is there a risk of fuel shortages for the general public?
MBIE has stated there is no need for New Zealanders to change how they buy fuel, as overall stocks remain well above minimum requirements and the supply chain is operating smoothly.
How might trucking rules change to save fuel?
Proposed changes include allowing heavy vehicles to carry more weight per trip, relaxing restrictions for oversized trucks, and easing delivery curfews in populated areas.
Do you think adjusting freight and trucking regulations is an effective way to manage national fuel security?
