New Zealand's fuel stocks drop but remain stable

Labour is accusing the government of looking "increasingly unprepared" when it comes to the country's fuel stocks.

It comes after Prime Minister Christopher Luxon said that the latest drop in fuel levels was not enough to trigger an escalation in New Zealand's fuel plan.

Today's update showed stocks were down by three to four days across each fuel type.

Luxon said, as a result, the country would remain at Phase One - without any restrictions or guidance to conserve fuel.

"Christopher Luxon isn't being straight with New Zealanders - he still hasn't explained what happens if shortages hit," Labour Leader Chris Hipkins said on Wednesday afternoon.

"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."

He said: "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."

The latest figures - accurate to midday Sunday - showed 56.3 total days of petrol, 45.4 days of diesel, and 47.0 days of jet fuel either in country or expected to arrive in the next three weeks.

That was down from the 59.7 days of petrol, 49.1 days of diesel and 50.7 days of jet fuel reported on Monday - which was also a decrease.

"The fuel companies have confirmed that supply chains continue to operate, although these types of delays are likely to become more common," the Ministry of Business, Innovation and Employment said.

Officials said the decrease of three or more days was enough to trigger a phase assessment according to the national fuel plan, but "MBIE's advice to ministers is that an assessment is not required, as these changes do not raise any immediate concerns".

Five ships were within two days of arriving, and seven more were within three weeks of arriving.

MBIE said one small shipment has been delayed due to congestion at Singapore's port. That was because of an increase in vessels there after some other countries closed their export facilities.

Luxon, in a media conference at Parliament, said proposals from industries and the public were being assessed for cutting regulations, which were being assessed by the Ministry of Regulation.

"These proposals include common-sense things like allowing heavy vehicles to carry heavier loads, to enable more freight to be moved per trip and supporting greater fuel efficiency."

Fuel importers were continuing to report "no material issues with future orders or future shipments", he said, and the government had reassurances about orders to the end of May, as well as planned orders through to end of June.

"We are staying at phase 1 of the national fuel response plan, but the ceasefire is fragile and the Strait of Hormuz remains effectively closed, so the risks to New Zealand's fuel security is still elevated."

He said he stood by the way the fuel data was arriving, saying the government had "a lot of commercially sensitive information that others don't have through our engagement with the fuel importers".

The government was "actively preparing" for moving up to a higher phase "in the event of widespread fuel shortages", he said.

"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 you don't use than to need one and be caught short."

The priority was getting the "additionally" of a 90-million litre diesel reserve tank at Marsden Point, he said, which should be operational roughly within the next seven weeks.

Luxon noted fuel prices remained high, and "I would love to be able to tell Kiwis that those prices will come down but that is not something that anyone can accurately predict".

"The price issue will impact our economy as more people's budgets is being spent on fuel, and less on discretionary items - but the far greater risk to our economy is a fuel shortage."

With the IMF warning the global fuel situation was likely to lead to a global recession, Luxon said that was why the government was focused on avoiding the mistakes seen during the Covid response.

"We're acting economically responsibly, and prudently, to make sure that we keep an eye on the long-term future for New Zealand and it's economic situation, as well as targeted support for people who need it."

He would not say he agreed with the United States' stance that short-term pain was worth it for long-term security.

"What I agree with is that we want this resolved as quickly as possible. We want the parties negotiating, I know ceasefire negotiations, you know, we want the ceasefire will remain holding, we want the parties negotiating a negotiated settlement."

The next MBIE update was expected next Monday.

- By RNZ