The Government is proposing to increase the country’s diesel reserves in a bid to strengthen its fuel resilience.

Associate Energy Minister Shane Jones said fuel security was a priority for the Coalition Government.

“We are acutely aware of how important engine fuels are to our economy and the impacts a fuel disruption would have on New Zealanders. New Zealand imports nearly all of its engine fuels, making us particularly vulnerable to international and domestic supply disruptions,” he said.

“Ensuring we hold enough reserve stocks in the right place to ride out possible disruptions is a key pillar of fuel security. It is a critical insurance policy needed to safeguard against the potentially devastating impacts that a severe and sustained fuel disruption might have.”

The previous government introduced a minimum stockholding obligation, which means from 1 January 2025 fuel importers will be required to hold 28 days’ cover for petrol, 24 days for jet fuel and 21 days for diesel.

The minimum stockholding obligation regulations introduce a new information disclosure rule, which enables government to have much clearer oversight over how much fuel is held in New Zealand.

“However, I am not satisfied that 21 days’ cover for diesel is enough, nor is the jet fuel stockholding rule sufficient to avoid disruptions to international aviation such as that we experienced in 2017,” Jones said.

“Diesel is our most important fuel – it keeps food and people moving through our country. Without it, New Zealanders would struggle to access everything they need. We need to hold enough diesel onshore to keep essential goods moving through the country and vital services running, even if fuel supply chains have been disrupted,” he said.

“For this reason, I am seeking feedback on increasing diesel reserves to 28 days’ stock to help reduce any potential impact of a disruption to supply.

“Along with reversing the ban on oil and gas exploration, these actions will further strengthen New Zealand’s resilience and self-determination to ensure disruptions to our energy supply do not halt the economy,.”

Read the discussion document on increasing diesel reserves from 21 to 28 days and have your say here: https://www.mbie.govt.nz/have-your-say/options-for-improving-our-diesel-resilience. Consultation closes on December 6.