The government is increasing its diesel reserves to better prepare the country for any future fuel disruptions.
Associate Energy Minister Shane Jones announced on Wednesday that diesel importers will be required to keep enough fuel in stock to last for 28 days, an increase from the current 21-day requirement. This new rule, effective from July 2028, will apply to importers who hold more than a 10 percent market share.
Jones explained that the change aims to prevent serious consequences during fuel shortages, allowing the country to manage smaller disruptions or find alternative solutions.
“We use about 11 million liters of diesel daily in New Zealand, which is essential for the economy – from food production and distribution to emergency electricity generation and transporting vital goods and services,” Jones said in a statement.
“While the likelihood of a prolonged fuel disruption is low, the impact on New Zealanders and the economy could be devastating,” he added.
A law passed by the Labour government in 2021 required importers to maintain 28 days’ worth of petrol, 24 days of jet fuel, and 21 days of diesel by January 2025. However, Jones mentioned that a recent Fuel Security Study found that a 21-day diesel reserve might be “too tight” even for a minor disruption.
“Building resilience is about balancing the risks with the costs to the sector and consumers. A 28-day reserve strikes a reasonable balance,” Jones explained.
The 2028 deadline gives fuel operators time to adjust and, if needed, build or upgrade storage tanks.
The NZ First-National coalition agreement also includes plans for a fuel security strategy to protect New Zealand’s transport, logistics, and emergency services from both domestic and international disruptions. Jones said this plan is expected to be released later this year.
Related Topics:
- Where to Dispose of Contaminated Diesel Fuel
- Understanding the Hazard Class of Diesel Fuel: A Comprehensive Guide
- 9 Best Diesel Treatments for Winter: Protecting Your Diesel Engine