New Zealand contracts nine days of diesel storage
- Sydney (20 April)
New Zealand energy operator Channel Infrastructure will store roughly nine days of diesel reserves at its dormant Marsden Point refinery on behalf of New Zealand’s government from 31 May 2026 until the end of 2027.
Channel Infrastructure needs to clean fuel tanks, connect them to existing infrastructure, and install fuel pumps at Marsden Point before storing additional diesel at the site, the company told investors on 20 April.
The New Zealand Government will pay Channel Infrastructure NZ$1.2 million (A$1 million) per month to store fuel at Marsden Point, the company added.
“While we are acutely aware of the importance of petrol and jet fuel, it is diesel that is the lifeblood of our economy,” New Zealand’s Resources Minister Shane Jones said on 2 April, when Channel Infrastructure and the Government reached an in-principle storage deal.
New Zealand had 20 days of diesel reserves on 15 April, down from 21 days on 12 April, data from the Ministry of Business, Innovation, and Employment (MBIE) show. The country is set to receive another 25 days’ worth of diesel over the next three weeks, according to MBIE.
The New Zealand Government is confident about fuel supplies in April and into May, Prime Minister Christopher Luxon said last week.
Diesel prices in New Zealand – which impact freight fees – have increased since the start of the US-Israeli war in Iran, because of disruptions around the Strait of Hormuz. The price of New Zealand diesel averaged NZ$3.66/litre on 20 April, up from around NZ$2.48/litre in late February, data from price monitor Gaspy show.
Cost pressures linked to the Iran war are also affecting other business inputs like plastics and fertiliser, the Employers and Manufacturers Association (EMA) said on 20 April.
Days earlier, on 16 April, New Zealand producer Fletcher Buildings told investors that it may increase plastics prices by up to 36% because of the Iran war. Fletcher – like many other global materials, refined oil, and fertiliser producers – partly relies on chemical feedstocks from the Persian Gulf, which need to pass through the Strait of Hormuz.
By Avinash Govind