NZ to Halt Reserve Diesel Stock Procurement to Strengthen Fuel Resilience

Legislation introduced in 2023 mandates that fuel importers hold reserves of 28 days’ worth of petrol, 24 days of jet fuel, and 21 days of diesel starting from 1 January 2025.


Devdiscourse News Desk | Wellington | Updated: 06-06-2024 12:29 IST | Created: 06-06-2024 12:29 IST
NZ to Halt Reserve Diesel Stock Procurement to Strengthen Fuel Resilience
To gather insights and opinions on the appropriate level of diesel stock cover and potential strategies for achieving this, MBIE will seek public input through a discussion paper later this year.
  • Country:
  • New Zealand

The Ministry of Business, Innovation and Employment (MBIE) will stop its current work on procuring reserve diesel stock and will explore other methods to strengthen New Zealand’s diesel resilience, announced Associate Energy Minister Shane Jones.

Additionally, MBIE will begin work on modifying the minimum fuel stockholding (MSO) regime to ensure a secure and resilient supply of engine fuels, which are critical to the economy. Given that nearly all engine fuels are imported, New Zealand is particularly vulnerable to both international and domestic supply disruptions.

“Ensuring New Zealand holds enough reserve stocks to withstand disruptions is a key pillar of fuel security. While the risks of supply disruptions are low, the consequences of a severe and sustained disruption would be significant,” stated Mr. Jones.

Legislation introduced in 2023 mandates that fuel importers hold reserves of 28 days’ worth of petrol, 24 days of jet fuel, and 21 days of diesel starting from 1 January 2025.

“At the time, there was also a commitment to investigate funding 70 million litres of reserve diesel stock and its storage. Procuring additional reserve diesel carries significant capital cost. Cabinet will need a robust understanding of options and their impacts before making decisions,” Mr. Jones explained.

To gather insights and opinions on the appropriate level of diesel stock cover and potential strategies for achieving this, MBIE will seek public input through a discussion paper later this year.

This announcement is part of a broader effort to enhance New Zealand’s fuel security. Current initiatives include commissioning a study into the country’s fuel security requirements and collaborating with industry partners on plans to increase jet fuel resilience at Auckland Airport.  

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