Focus area 4: Resilience in a transitioning market

Demand for traditional liquid fuels is likely to drop in the long-term as sectors transition to electricity and other alternative fuels. There is uncertainty in the pace and scale of this transition, creating challenges for consumers, industry and government.

Infrastructure investors and operators may not invest in infrastructure for these fuels due to the risk of stranded assets, such as, the risk that the economic life of the asset is not realised.

Premature closure of or underinvestment in critical infrastructure could impact consumers’ access to fuels, or increase regional vulnerabilities to supply disruptions, especially during emergencies.

We will continue monitoring regional fuel supply and demand patterns, and regularly engage with industry stakeholders. This will allow us to identify any emerging security of supply issues – such as rapid stock depletion following a major disruption – and consider whether government intervention is required. 

The 2019 Government Inquiry into Auckland Fuel Supply Disruption recommended urgently building resilience into the infrastructure for supplying Auckland Airport with jet fuel. In response, government will require fuel companies to hold at least 10 days of jet fuel at 80% of operations from 1 November 2026. We will continue to monitor progress on infrastructure investments, ensuring they consider other resilience measures including the input capacity to the airport fuel terminal.

Our actions

Underway

4.1: Monitor patterns of fuel supply and demand to ensure consumers have access to products.

4.2: Monitor progress on resilience measures at Auckland Airport as recommended by the 2019 Government Inquiry into the Auckland Supply Disruption.

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