New Zealand unlikely to adopt fuel restrictions
Sydney (11 May)
New Zealand is unlikely to adopt fuel restrictions under its newly revised 2026 Fuel Response Plan, following public consultation and recent fuel reserve increases, the Government announced on 11 May.
The Government would only adopt mandatory fuel prioritisation measures if there was a genuine likelihood of a prolonged supply disruption, such as the loss of a large share of supply for many months, Prime Minister Chris Luxon said at a press conference.
Modelling suggests that it is highly unlikely that New Zealand would need to apply mandatory restrictions, Luxon added.
Modelling also indicates that the most plausible disruptions to New Zealand’s fuel system are small and temporary supply shocks that can be managed through voluntary measures, Finance Minister Nicola Willis said.
Foreign oil refiners that supply New Zealand with fuel have secured crude oil feedstock until August, Willis said. Refiners have also cut production over recent months, but they are not expecting to further reduce output, Willis added.
Singaporean refiners – who are major suppliers of New Zealand fuel – reduced their petroleum output by 20% on the year in March, data released by the Singapore Economic Development Board (EDB) on 27 April show.
But the New Zealand Government has been advised that refiners supplying the country with fuel are only dealing with up to a 10% reduction in output, according to Resources Minister Shane Jones.
Singaporean refiners accounted for 32% of New Zealand’s refined fuel imports in 2024, while South Korean and Malaysian refiners accounted for 52% and 6% of imports that year, respectively, data from the Observatory of Economic Complexity (OEC) show.
If New Zealand adopts prioritisation measures, critical service providers will face no restrictions, food and freight users will face limited restrictions, other commercial users will face adjusted fuel access limits, and retail users will face transaction limits, Willis said.
New Zealand had 32 days’ worth of petrol reserves, 24 days’ worth of diesel reserves, and 32 days’ worth of jet fuel reserves on 6 May, data from the Ministry of Business, Innovation, and Employment (MBIE) show.
Ships carrying another 19 days’ worth of petrol, 21 days’ worth of diesel, and 22 days’ worth of jet fuel will arrive in the country over the next three weeks, according to MBIE.
By Avinash Govind