Prime Minister Christopher Luxon says New Zealand has "no risk of disruption to our future fuel supply" despite a second consecutive drop in stocks and the first reported delay of a shipment at an overseas loading hub.
Officials warned today that maritime delays are likely to become more frequent after revealing that one shipment had been held up in Singapore.
The Ministry of Business, Innovation and Employment published its latest twice-weekly fuel stocks update on Wednesday afternoon.
Watch: Luxon speaks to media after latest fuel stocks update
As of 11.59pm on Sunday, total on-water and in-country stocks were at 56.3 days of petrol, 45.4 days of diesel and 47 days of jet fuel — down from 59.7, 49.1 and 50.7 days respectively in the previous snapshot, taken last Wednesday.
"Although this is the second consecutive update with drops in total fuel stock, these changes do not raise any immediate concerns," an MBIE spokesperson said.
In-country stocks – fuel already held onshore at storage terminals – were at 25.3 days of petrol, 20.8 days of diesel and 21.3 days of jet fuel. Those figures were down slightly from the previous update, which showed 25.6, 21.7 and 25.1 days respectively.
Labour leader Chris Hipkins described the figures as alarming, saying there was now less than three weeks of in-country diesel, accusing the Government of being unprepared and "asleep at the wheel" on the fuel crisis.
But Luxon has remained confident in his plans, saying that ministers were meeting regularly and continually taking advice from officials.
NZ to remain at level one of fuel plan
The Prime Minister said the country would remain at phase one of the fuel plan.
"Officials have again recommended that a formal assessment is not necessary at this time. Therefore, we are staying at phase one of the national fuel response plan," he said.
"But the ceasefire is fragile, and the Strait of Hormuz remains effectively closed, so the risk to New Zealand's fuel security is elevated.
Fuel companies insist supply is there but one pump on a main highway has been empty for a month. (Source: 1News)
"While we remain at phase one, we are actively preparing for the possibility that we need to move up the response phases in the event of widespread fuel shortages."
"We're not there yet, and we hope to never get there, but as a prudent and responsible government, we know it is better to have a plan".
In today's update, officials said the departure of one "small shipment" had been delayed in Singapore, and warned that delays around shipping were becoming more common.
"This is because, as some countries have closed their export facilities, more vessels are using Singapore as their primary loading hub – leading to congestion and delays.
"The fuel companies have confirmed that supply chains continue to operate, although these types of delays are likely to become more common," said an MBIE spokesperson.
'A bit like aviation fuel' – Luxon on delayed shipment
Speaking to reporters, Luxon described the delay as lasting less than an hour and dismissed it as routine, telling reporters it was "just the nature of the industry".
"In the refineries in Singapore, it's quite normal practice. It's a bit like aviation fuel as well ... It's a technical thing and a very minor thing, and not a significant thing at all."
Two-week ceasefire of hostilities has yet to return the flow of supply ships through the Strait of Hormuz. (Source: 1News)
Five tankers were within New Zealand's exclusive economic zone, with a further seven vessels up to three weeks away – down from nine in the previous report.
Fuel stocks have fluctuated within a broadly stable range over the past month.
Under the national fuel plan, the Government's Fuel Security Ministerial Oversight Group was expected to consider a shift between response phases when any fuel type moves by more than three days between the most recently published updates.
Luxon said the Government was also working through "commercial proposals" involving unsolicited bids to procure additional fuel supply above current stock holdings, and would have more to say on those shortly.
He said: "I want to reassure New Zealanders. We have a fuel supply. We have no risk of disruption to our future fuel supply. We've got confirmed orders out to the end of May. We've got planned orders well through June. We're in a good position.
"We just want to secure additionality, particularly around diesel."
The Ministry of Regulation had also received proposals from industry and the public on removing non-essential regulatory barriers to improve fuel efficiency. These included allowing heavy vehicles to carry heavier loads to move more freight per trip.
As tensions overseas drive fuel prices higher, a small mountain bike club in Dome Valley says the theft of 200 litres of diesel has dealt a major setback to its volunteer-run projec (Source: 1News)
Luxon added: "We're being responsible with an eye on the long term. I'm proud we've got organised early. We've got we've had very good stocks in country. We've got no risk to any fuel disruption at this point in time – and that fuel supply is job number one."
But Labour's Hipkins said: “Christopher Luxon isn’t being straight with New Zealanders – he still hasn’t explained what happens if shortages hit.
"National can't say at what point we move from one stage to another. Kiwis deserve to know what the plan is, but two months into this conflict, there isn't one."
"This is the second update in a week showing New Zealand’s supply of petrol, diesel, and jet fuel have all gone down. Most alarming, there’s now less than three weeks of diesel in the country, which is critical for the economy.
He added: "Dealing with the fuel crisis should be this Government’s top priority. Instead, they’re sitting back and hoping for the best. Hope is not a plan, and it won’t keep fuel flowing for households and businesses.
"Other countries are already acting decisively. In Australia, they’re pulling out all the stops. Our Government needs to step up."
PM's repeated message over fuel security
Luxon was at pains to reassure Kiwis while speaking to media on Monday.
"New Zealand is actually in quite a strong position even relative to say, Australia," he said.
"We've been talking from there with our fuel importers. They give us a lot of confidence that they've got all of their shipments coming through up until the end of May — even some into June.
"A lot of the refineries we've dealt with – in South Korea and in Singapore – they're finding alternative crude sources other than the Middle East, that of course, is giving everyone quite a bit of confidence in the system."
But fuel prices have continued to bite, with a Westpac report released earlier this week finding fuel spending had risen 15% compared with the same period last year.
The average price of 91 unleaded has climbed $1.04 per litre nationwide — a 40% increase — while diesel prices have surged $1.90 per litre. The average volume purchased per transaction has dropped by around 6-8%.
Luxon reaffirmed on Monday that, even if a resolution were reached overnight, the effects would not disappear immediately.
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