The Government is moving to strengthen New Zealand’s fuel resilience by temporarily allowing fuel that meets Australian specifications to be supplied domestically.
The change is aimed at giving fuel importers access to a wider pool of supply in a tight global market, as geopolitical tensions continue to impact availability.
“In a tight global fuel market, flexibility matters. Countries that can access a wider range of shipments are better placed to keep fuel flowing,” Associate Energy Minister Shane Jones says.
“This decision removes unnecessary technical barriers and helps ensure New Zealand isn’t excluded from available supply our neighbours across the Tasman are accessing.”
The temporary alignment will allow fuel refined to Australian standards to be imported and sold in New Zealand, reducing the risk of supply disruptions caused by specification differences.
Jones says fuel companies have indicated the move could enable faster access to shipments and broaden sourcing options.
“Our fuel specifications are already very similar to Australia’s. Fuel refined to Australian standards is compatible with New Zealand vehicles and meets safety and quality expectations,” he says.
However, the Government has ruled out adopting Australia’s move to allow higher sulphur fuel at this stage. Australia has made the decision so it can access high-sulphur fuel from its Brisbane refinery.
“However, we will keep an eye on whether further changes to fuel specifications could open up further supply channels if necessary,” Jones says.
The temporary measure could remain in place for up to 12 months, with officials continuing to monitor market conditions and consider further steps if required.
