Onshore fuel stockholding consultation

closed
Submissions closed: 28 February 2022, 5pm

The Ministry of Business, Innovation and Employment (MBIE) is seeking submissions on its proposed requirement for a minimum onshore fuel stockholding level and the options for how the minimum onshore fuels can be achieved.

It is also proposing to change the formula for calculating the petroleum and engine fuel monitoring levy. The feedback from this consultation will be used by MBIE to inform the development of legislation on onshore fuel stockholding.

About the consultation

In September 2021, Cabinet asked officials to investigate the option of increasing minimum levels of fuel stock held in New Zealand in order to improve our fuel security in the event of a fuel disruption. This review of fuel security was prompted by the significant change in the fuel supply chain after the move by Refining NZ to switch to an import only terminal and end refinery operations at Marsden Point.

The preferred option for minimum onshore fuel stockholding levels is similar to what has been proposed in Australia, namely 28 days of cover for diesel and its biofuel equivalent, and 24 days of cover for petrol and jet fuel.

The options for achieving a target level of onshore fuel stocks are:

  • Government procuring stock or tickets for onshore fuel stocks
  • Requiring fuel wholesale suppliers to meet a minimum onshore fuel stockholding level
  • Establishing a stockholding agency for managing the minimum stockholding obligations of fuel industry participants and the Government.

What we are consulting on

We want feedback on the options on how to achieve minimum onshore fuel stockholding levels similar to what has been proposed in Australia.

The consultation document has information about options that MBIE has considered and seeks input on a number of questions.

Last updated: 17 January 2022