“It is vital there are sufficient stockholdings of diesel held onshore to assure our members that the supply chain can continue to operate,” says National Road Carriers Association (NRC) CEO, Justin Tighe-Umbers of the Government’s Fuel Industry (Improving Fuel Resilience) Amendment Bill.

The Bill aims to improve the resilience of New Zealand’s fuel supply by requiring at least 21 days’ supply of diesel onshore.

“New Zealand is totally reliant on imported diesel and we are vulnerable to any disruption to that supply or issues with product quality upon arrival. This vulnerability must be mitigated by ensuring there is sufficient onshore supply to buffer these potential disruptions.”

Mr Tighe-Umbers says this vulnerability has existed for decades and New Zealand has faced shortages of diesel before Marsden Point was closed, with the only difference now being the import of refined product. Adding capacity for onshore storage will place New Zealand in a far stronger position with refined product being able to be sourced from a variety of sources, he says.

He adds that the recommendation to increase onshore capacity to 21 days’ supply should be seen as a minimum requirement, and welcomes the Government’s plan to stockpile another seven days’ supply on top.

“While New Zealand will still be reliant on diesel well past 2050, it may be necessary for the Crown to take a direct role in adding to this capacity as it may be difficult to justify private sector capital investment in infrastructure that supports a sector that is transitioning away from fossil fuels as the fleet decarbonises. The requirement for additional capacity may not exist long enough to provide a return on capital. 

“Relying on fuel in transit as part of our on-shore reserves is problematic. Until it is in onshore tanks tested for quality it is not guaranteed able to be used.”