New Zealand’s minimum diesel stockholding requirements will rise from 21 to 28 days from mid-2028, a move the Government says will strengthen the country’s resilience against fuel supply disruptions.
Associate Energy Minister Shane Jones announced the change, saying it followed a public consultation late last year.
From July 1, 2028, fuel importers holding more than 10% market share will be required to store an additional week’s supply of diesel onshore.
“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 says.
“While the chances of a severe and sustained fuel disruption are low, the consequences for Kiwis and our economy would be catastrophic.”
He says New Zealand’s diesel reserves were comparatively low, leaving the country particularly exposed.
“Our diesel reserves are lower than reserves for other fuel types, meaning we are particularly vulnerable to supply disruptions. The Fuel Security Study I released in February found our diesel cover of 21 days in reserve could be tight to manage, even for a minor disruption,” Jones says.
“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 and means we will be able to better ride out smaller disruptions and, in the event of a major supply event, it will give us time to get solutions in place.”
The increased obligation will apply only to large importers for now, but Jones says the requirement for smaller market players – those with under 10% market share – would be reviewed next year.
Fuel security remains a key focus for the coalition, with the Government also developing a wider Fuel Security Plan for New Zealand. The initiative forms part of the New Zealand First-National coalition agreement, and the plan is expected to be delivered later this year.
“Establishing the requirement to hold more diesel reserves from July 2028 allows operators enough time to determine how to incorporate additional diesel into their networks and if necessary, to build or refurbish existing tanks,” Jones says.
