The Government has secured an additional nine days’ worth of diesel supply to strengthen New Zealand’s fuel reserves and mitigate the effects of the global oil shock, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones announced today.
The Government signed a letter of intent with Z Energy following a competitive procurement process to acquire 90 million litres of NZ-specification diesel. The fuel will be delivered to Marsden Point in Northland and stored in a refurbished tank capable of holding more than 90 million litres by early June. The Crown will control the release of this additional supply into the New Zealand market, although Z Energy will procure, own, and manage the volume.
Minister Willis emphasised the importance of the move for economic stability. “Reliable fuel supply is essential for households and businesses. We have prioritised securing additional diesel because it is the fuel that drives the economy,” she said. “We are taking a measured, responsible approach and believe this agreement, alongside the other work the Government is doing, will help strengthen our fuel security and give reassurance to Kiwis.”
Associate Energy Minister Jones confirmed that Z Energy was selected after a competitive process run by the Ministry of Business, Innovation and Employment (MBIE). “Z Energy’s proposal delivered the strongest overall advantages, providing value for money alongside practical flexibility around how and when the additional fuel could be used,” Mr Jones said.
The government stated the measure is a practical, forward-looking step to ensure New Zealand has more resilience during a time of global fuel market uncertainty, reducing the potential impacts of international supply disruptions from the ongoing conflict in the Middle East.