Focus area 4: Resilience in a transitioning market
Insufficient maintenance of fuel infrastructure through the transition could impact security of supply.
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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.
Demand for traditional liquid fuels is likely to drop in the long-term as sectors transition to electricity and other alternative fuels.
Infrastructure investors and operators may not invest in infrastructure for these fuels due to the risk of stranded assets, ie 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. 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. In this instance, we can require fuel stocks to be held in specific locations.
We have already implemented a geographically specific jet fuel stockholding obligation at Auckland Airport in response to the 2019 Government Inquiry into the Auckland Fuel Supply Disruption. From 1 November 2026, the Government will require fuel companies to hold at least 10 days of jet fuel at 80 per cent of operations. We will continue to monitor progress on
other jet fuel infrastructure investments at the airport, 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 Fuel Supply Disruption.