Fuel supply options widen

The government has announced it will temporarily allow fuel that meets Australian specifications into the New Zealand market to help strengthen domestic “fuel resilience”.

Shane Jones, Associate Minister of Energy, says the decision removes unnecessary technical barriers in a tight global fuel market and ensures New Zealand isn’t excluded from available supplies that Australia is accessing.

“Countries that can access a wider range of shipments are better placed to keep fuel flowing,” he says.

Jones, pictured, adds the temporary alignment could be in place for up to 12 months, if needed, and will allow fuel refined to Australian specifications to be supplied to New Zealand.

“The change reduces the risk of supply disruptions driven purely by technical specification differences,” he continues. 

“Fuel companies have told us this could allow them to secure shipments more quickly and from a wider pool of suppliers.

“Our fuel specifications are already very similar to Australia’s. Fuel refined to Australian standards is compatible with New Zealand vehicles and meets safety and quality expectations.”

The move was revealed on March 23 and comes a day before the government is set to announce plans to provide New Zealanders with financial assistance during the fuel crisis that has been spurred by conflict in the Middle East.

However, New Zealand will not, at this stage, follow Australia’s lead and relax standards to allow higher sulphur fuel.

“However, we will keep an eye on whether further changes to fuel specifications could open up further supply channels if necessary,” notes Jones.

“This is a sensible, time-limited step that gives importers access to a broader range of fuel shipments, including those already in our region.

“We are closely monitoring market conditions and will keep under review any further practical measures that could strengthen New Zealand’s fuel supply resilience while global conditions remain uncertain.”