National Road Carriers Association says it sees the Government’s announcement this week to increase onshore fuel holdings to 21 days for diesel as a significant step forward.

NRC chief executive Justin Tighe-Umbers said onshore fuel holdings are a critical part of New Zealand’s domestic supply chain resilience.

“Ninety-three per cent of our goods are delivered via diesel trucks, including the critical exports that pay our way such as dairy, logging and agriculture,” said Tighe-Umbers.

“New Zealand is almost entirely dependent on international shipping for our ground fuels, and there is no guarantee we won’t face more supply chain disruptions or shipping lane volatility in the near term as global instability rises in north Asia and Europe,” he said.

“Ideally, I’d like to see an even longer onshore fuel stock requirement given our vulnerability, 30 days or beyond.

“The challenge is, this requires building more storage facilities for a fuel that is being transitioned away from, so oil companies are reluctant to invest.”