Associate Energy Minister Shane Jones says the change would help the country to avoid catastrophe in the event of any long-term supply disruptions. Photo: RNZ / Samuel Rillstone
The government is boosting diesel reserves to help the country tide over any severe and sustained fuel disruptions in future.
Associate Energy Minister Shane Jones announced on Wednesday morning diesel importers would be required to hold enough fuel onshore to last 28 days, up from 21 now.
The new requirement - which kicks in from July 2028 - will apply to importers with more than a 10 percent market share.
Jones said the change would help the country to avoid catastrophe, allowing time to ride out smaller disruptions or get other solutions in place.
"We use around 11 million litres of diesel every day in New Zealand, and it is vital for the economy - from food production and distribution to emergency electricity generation and the movement of essential goods and services," Jones said in a statement.
"While the chances of a severe and sustained fuel disruption are low, the consequences for Kiwis and our economy would be catastrophic."
Under legislation passed by the Labour government, from 1 January 2025, importers were to be required to hold 28 days' cover for petrol, 24 days for jet fuel and 21 days for diesel.
But Jones said the Fuel Security Study released in February found that the 21-day diesel reserve could be "tight to manage" even for a minor disruption.
"Building our resilience must carefully balance the risks with the cost of mitigation to the sector and ultimately consumers. A reserve of 28 days is a good compromise."
The 2028 deadline would give operators time to adapt and if necessary, to build or refurbish existing tanks, Jones said.
The NZ First-National coalition agreement included a commitment to establish a fuel security plan "to safeguard our transport and logistics systems and emergency services from any international or domestic disruption".
Jones said that plan was expected to be delivered later this year.
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