Oil

Background

Oil can refer to a wide range of different products, including

• crude oil extracted from oil fields
• refined fuels like petrol, diesel, and jet fuel, which are produced through refining crude oil.

New Zealand’s crude oil fields are concentrated both within and just off the shore of the Taranaki region (see Figure E.1 in the Gas section of this report). Crude oil extracted in New Zealand is bound entirely for the export market.

Gas

Even when New Zealand had the capacity to refine crude oil, almost all of New Zealand’s crude oil was exported as it wasn’t suited to onshore refining capabilities. Until 2021, the country’s sole refinery operated at Marsden Point, north of Auckland. This refinery produced several types of refined fuels (mainly petrol, diesel, and jet fuel) from imported crude oil, usually sourced from the Middle East. On 31 March 2022 the refinery shut down for economic reasons and the facility switched to operating solely as a fuel import terminal.

Since the closure of the Marsden Point refinery, New Zealand’s imports of crude oil have dropped to zero, with imports of refined products rising to cover the shortfall. Five companies currently import fuel for sale in New Zealand: Z Energy, BP, Mobil, Gull, and Tasman Fuels/Timaru Oil Services Limited (TOSL). These companies sell fuel both directly to consumers and to independent fuel distributors/retailers.

Crude oil production and exports continue to decline

Crude oil production for 2025 totalled 31.3 PJ, a decrease of 2.9 per cent on production for 2024 (32.2 PJ). This decrease was driven by declines across most fields (Figure F.1). However the Maari and Turangi fields both reported increases in crude oil production (up 0.88 and 1.41 PJ respectively), somewhat offsetting the trend observed in other fields.

Crude oil extracted in New Zealand is bound entirely for the export market. As a result, crude oil exports fell 0.6 per cent or 0.20 PJ compared to 2024 levels.

Liquefied petroleum gas (LPG) production for 2025 totalled 5.89 PJ, a decrease of 15 per cent on 2024 production (6.91 PJ). LPG production within New Zealand is concentrated on a much smaller set of fields and has been particularly impacted by the decrease in production at Maui field (Figure F.2).

In 2025, 62 per cent of New Zealand’s LPG supply came from indigenous production, as opposed to imports (Figure F.3). This figure has been gradually decreasing since the mid-2010s, when domestic production met almost all of New Zealand’s demand. As production has dropped, imports have increased to meet a relatively steady demand. LPG imports for 2025 totalled 3.55 PJ, an increase of 15 per cent on 2024 imports.

The decline in crude oil and LPG production reflects falling output from ageing oil and gas fields, many of which are approaching the end of their operational life. This is a long-term trend that we have observed since around 2007 (Figure F.4).

Imports and consumption remain steady

Oil imports for 2025 totalled 340 PJ, an increase of 0.5 per cent on 2024 figures (338 PJ). Diesel continues to be New Zealand’s largest import, comprising 45 per cent of all oil imports, followed closely by petrol (30 per cent) and jet fuel (19 per cent).

Since the closure of the Marsden Point refinery, New Zealand has imported all its refined petroleum products, mainly from Asian countries such as South Korea, Singapore, and Malaysia (Figure F.5; values based on Stats NZ overseas merchandise trade datasets). However, the contribution of countries differs across fuel types. For example, Japanese refineries supply around 10 per cent of New Zealand’s diesel, but very little jet fuel or petrol, while Malaysian refineries supply much more petrol to New Zealand than any other fuel.

The Twelve-Day War between Israel and Iran in June 2025 threatened to impact global oil supply. However, this conflict had little effect on New Zealand’s imports of refined products, with the International Energy Agency concluding that the conflict had no impact on Iranian oil flows²².

The total domestic consumption of oil for 2025 was 271 PJ, a decrease of 0.3 per cent on consumption for 2024 (272 PJ). A small decrease in petrol use (down 0.9 per cent or 0.96 PJ) was partially offset by increased diesel consumption (up 0.3 per cent or 0.40 PJ). Domestic transport accounts for the vast majority (76 per cent) of oil products use in New Zealand, with the remainder split between the residential (8.1 per cent), agricultural (6.4 per cent), industrial (6.1 per cent) and commercial (2.9 per cent) sectors. Sectoral consumption trends have stayed relatively steady over the past decade, with very little change observed between 2024 and 2025.

Fuel prices remain steady

Petrol prices for the final quarter of 2025 were 279.60 cents per litre (c/L)²³ for premium petrol and 260.60 c/L for regular petrol, a decrease of 1.0 per cent and 0.8 per cent respectively (when adjusted for inflation) on prices for the same quarter of the previous year. In contrast, diesel prices for the final quarter of 2025 were 212.68 c/L for retail consumer and 165.72 c/L for commercial consumers, an increase of 1.8 per cent and 0.8 per cent respectively on prices for the same quarter of the previous year (Figure F.6).

The average Dubai crude oil price for the year decreased from NZ$132 per barrel in 2024 to NZ$120 per barrel in 2025, reducing fuel import costs and placing downward pressure on domestic fuel prices. One factor contributing to this decline was an agreement by eight OPEC+ members to gradually unwind voluntary production cuts between April 2025 and September 2026 to increase global oil supply.

Partly offsetting this was the United States’ widespread imposition of tariffs and the resulting retaliatory tariffs imposed by other countries, contributing to increased international fuel prices over the first half of the year. Shipping costs also increased in the latter half of the year, particularly for Asian refineries, due to increased sanctions against various oil-producing countries (including Russia, Iran, and Venezuela).

Footnotes

[22] Oil market report, June 2025(external link) — International Energy Agency

[23] All prices quoted in this section are adjusted for inflation, and expressed as December 2025 values.

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