NZ to release six days of oil reserves amid global effort to stabilise fuel prices

Thursday, 12 March 2026

New Zealand is set to release the equivalent of six days’ fuel supply as part of a global effort to stabilise oil prices.

The move follows a decision by senior ministers to support a recommendation from the International Energy Agency (IEA) to release strategic oil reserves in response to the Middle East conflict.

New Zealand, one of 32 member countries in the IEA, is required to contribute to the collective release to help bring down global prices and maintain market stability.

Associate Minister for Energy Shane Jones said the Government had not yet determined the exact mechanism for the release, but it could involve terminating 'tickets' or contracts to make the oil available to the market.

“We should not overlook the fact that we are making a small but significant contribution to protecting global economies and helping to ease the oil price and supply issues around the world,” Jones said.

The decision was discussed at the first meeting of the newly formed Ministerial Economic Security and Supply Chains Group.

The group was established to provide strategic oversight and ensure essential services are protected during periods of heightened global risk.

Finance Minister Nicola Willis said that while the country remains in a healthy position, the economy relies on ministers having accurate facts to make significant decisions.

Fuel companies currently report no significant supply chain issues, with onshore and in-transit fuel stock levels remaining strong.

Under IEA rules, members are required to hold 90 days of oil stocks. New Zealand maintains its portion of these stocks through a combination of physical holdings and contractual oil tickets.

Jones said the Government would ensure the impact of the release on New Zealanders is minimised. He told RNZ the IEA system was established after the 1970s oil crisis, and New Zealand joined the organisation in 1976.

Under the coordinated release, New Zealand’s share was equivalent to just under 1.6 million barrels of oil.

“These stocks are actually stored overseas,” Jones said, noting New Zealand holds entitlement to reserves held in countries including the United States, Japan and the United Kingdom.

Rather than being shipped directly to New Zealand, the oil is released into global markets where it can be purchased by buyers.

Despite rising fuel prices linked to the conflict, Jones said officials had not been alerted to any disruption to shipments bound for New Zealand.

“We sought advice from the most senior officials last night and the oil companies have not told us that anyone is diverting a ship meant to be coming to New Zealand,” he said.

Officials and fuel companies are now sharing information with the Government on a daily basis as the situation evolves.

“At this stage we’re advised we are well within the statutory stock-holding obligations that the oil companies must abide by.”