NZ Boosts Diesel Reserves with New 28-Day Stockholding Rule by 2028

New Zealand consumes approximately 11 million litres of diesel daily, making it an essential fuel for the functioning of the economy.

In a decisive move to strengthen New Zealand’s fuel security and economic resilience, Associate Energy Minister Shane Jones has announced that the minimum stockholding obligation for diesel importers with a significant market share will increase from 21 to 28 days' cover, effective from 1 July 2028. This policy shift marks a critical milestone in the Coalition Government’s broader effort to safeguard the country against potential fuel supply disruptions.

The new requirement will apply to diesel importers that hold more than a 10 percent share of the domestic market. These companies will be obligated to store an additional seven days’ worth of diesel within New Zealand borders, increasing the total national diesel reserve capacity.

A Strategic Shift in Fuel Security Policy

New Zealand consumes approximately 11 million litres of diesel daily, making it an essential fuel for the functioning of the economy. Diesel powers a vast array of vital sectors, including food production, transport logistics, construction, and emergency electricity generation. Due to its widespread usage, any significant disruption to diesel supply could have immediate and severe economic consequences.

“Our diesel reserves are lower than those of other fuel types, meaning we are particularly vulnerable to supply disruptions,” said Minister Jones. “While the likelihood of a major and extended fuel crisis is low, we cannot afford to be unprepared. A 28-day reserve strikes the right balance between affordability and resilience.”

The change follows public consultation held in late 2024 and stems from recommendations outlined in the Fuel Security Study released in February 2025. That report highlighted that New Zealand’s current 21-day diesel reserve could prove insufficient even during relatively minor disruptions, underscoring the need for an upgrade in fuel security protocols.

Preparing for the Future

The transition period until mid-2028 is designed to give importers sufficient time to adapt to the new obligation. This includes exploring options for increasing onshore diesel storage capacity, whether through the construction of new storage facilities or the refurbishment of existing infrastructure.

“This long lead time is deliberate. It allows fuel operators the flexibility to plan and invest in the infrastructure needed to meet the increased reserve requirements without causing unnecessary disruption or cost burdens in the short term,” Jones noted.

The government is concurrently working on a comprehensive Fuel Security Plan, a key commitment under the New Zealand First-National Coalition Agreement. The plan is expected to be released later in 2025 and will outline a broader strategy for maintaining and enhancing the country’s fuel security across all fuel types, not just diesel.

Considerations for Smaller Importers

While the 28-day obligation will apply to major diesel importers, those with a market share of less than 10 percent will not yet be subject to the same requirements. However, the government has indicated that the stockholding rules for these smaller players will be reviewed in 2026, potentially leading to additional changes.

The phased approach reflects the government’s intent to tailor fuel security requirements based on market impact and operational capacity, ensuring that no segment of the fuel supply chain is disproportionately affected.

A Resilient Energy Future

Minister Jones emphasized that while fuel disruptions are not an everyday occurrence, the increasing geopolitical uncertainty and climate-related risks around the globe make preparedness more important than ever.

“Our energy resilience isn’t just about protecting the supply chain—it’s about protecting Kiwi livelihoods and our economy’s ability to function under pressure,” Jones said.

With this forward-looking policy, New Zealand is taking proactive steps to ensure that even in the face of global or regional disruptions, the nation can continue to power its critical services and industries with minimal interruption.

As the global energy landscape evolves, New Zealand’s move to bolster its diesel reserves underscores a growing recognition among governments worldwide: strategic fuel reserves are not a luxury—they are a necessity.