Associate Minister for Energy, Minister Shane Jones is calling for public calm regarding global oil supplies amid the war in the Middle East.
The Government’s newly established Ministerial Economic Security and Supply Chains Group met for the first time last night to discuss New Zealand’s situation and potential next steps on fuel security in response to the Middle East conflict.
Minister Shane Jones is responsible for fuel security. At last night’s meeting, ministers were briefed on a decision made to support the recommendation of the International Energy Agency (IEA) to release oil reserves.
New Zealand is a member of the IEA, along with 31 other countries, and is obliged to contribute to this release of strategic reserve, which is intended to bring down the price of oil globally and stabilise the market.
Members of the IEA are required to hold 90 days of oil stocks. New Zealand holds its stocks, in part, through oil tickets or contracts.
“New Zealand’s contribution is equivalent to about six days’ fuel supply here. It can make that contribution through measures such as terminating its tickets to make the oil available to the market.
“We have not yet determined how we will do this but the Government will ensure that the impact on Kiwis is minimised. We should not overlook the fact that we are making a small but significant contribution to protecting global economies and helping to ease the oil price and supply issues around the world,” Mr Jones says.
At last night’s meeting, ministers were advised that fuel companies in New Zealand are reporting no significant supply chain issues and that fuel stock levels, both onshore and in transit to New Zealand, remain strong.
“By establishing this ministerial group, the Government is taking proactive steps to safeguard fuel supplies, support economic continuity, and enhance New Zealand’s resilience in the face of global volatility,” Mr Jones says
“New Zealanders should be reassured that we are monitoring this very, very closely. When we receive information, we will share that information. If circumstances change, we will swiftly notify the public. There is no need for panic or over-reaction.”