Government widens fuel supply options

The Government is taking practical steps to strengthen New Zealand's fuel resilience by temporarily allowing fuel that meets Australian specifications to be supplied to the New Zealand market, Associate Energy Minister Shane Jones says.

"In a tight global fuel market, flexibility matters. Countries that can access a wider range of shipments are better placed to keep fuel flowing. This decision removes unnecessary technical barriers and helps ensure New Zealand isn't excluded from available supply our neighbours across the Tasman are accessing," Mr Jones says.

The temporary alignment will open up more options for fuel importers by allowing fuel refined to Australian specifications to be supplied domestically.

"The change reduces the risk of supply disruptions driven purely by technical specification differences. 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."

New Zealand will not, at this stage, be following Australia's lead and relaxing standards to allow higher sulphur fuel. Australia has made the decision so it can access high-sulphur fuel from its Brisbane refinery.

"However, we will keep an eye on whether further changes to fuel specifications could open up further supply channels if necessary," Mr Jones says.

"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."

The temporary alignment with Australian specifications could remain in place for up to 12 months if needed.

Editors' note:

• Fuel specifications set the minimum technical and environmental requirements that petrol, diesel and other transport fuels must meet before they can be supplied in New Zealand. Each country has its own fuel specifications.
• Where there are differences in fuel specifications for the purpose of catering to different climatic conditions, this is dealt with by the requirement that fuel sold in New Zealand must still be 'fit for common purpose'. For example, this means diesel for hot climates cannot be sold in very cold ones.