Shane Jones: What the Government is doing to secure NZ’s fuel supply amid Iran war
Wednesday, 11 March 2026
Shane Jones is Associate Minister for Energy and and deputy leader of NZ First.
OPINION: As an island nation, we’ve always relied on global supply chains — exporting what we’re great at and importing the fuel and goods that keep the country moving. We know how important a reliable fuel supply is for people, communities and businesses.
While the conflict in Iran continues to disrupt international oil markets and the global economy, New Zealand is prepared for mitigation of the impact on its fuel supplies.
When I came into office, I immediately began work on a fuel security plan, to improve our resilience in a strategic and practical way.
What I can assure you is this: our fuel system is resilient.
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In the past, we have relied upon the Petroleum Demand Restraint Act as a basis for managing scarcity, i.e. rationing. Many Kiwis will remember the carless days of the 1970s, where different coloured windscreen stickers determined which days you left the car at home.
Fortunately, the Government has put in place a minimum stockholding obligation (MSO) which requires fuel importers to hold minimum reserves of fuel – at least 28 days of petrol, 24 days of jet fuel and 21 days of diesel.
At this stage there is no suggestion that rationing, or similar interventions, are required. We will also keep in regular contact with our closest partner, Australia, should matters turn sour.
Fuel importers have reported stockholding in excess of our minimum levels, with more supply on ships headed our way. Fuel cargoes have not stopped. Ships are unloading fuel in New Zealand every day. The Government is publishing weekly stock data so New Zealanders have a clear picture of fuel supplies.
MBIE has convened the fuel sector co-ordinating entity, consisting of government agencies and fuel companies, under the fuel security plan.
The Government has also taken the step of establishing a group of senior ministers to coordinate information, possible interventions, and collaboration with the private sector.
Importantly, New Zealand is a member of the International Energy Agency (IEA). This gives us access to shared emergency measures and support from other member countries. The IEA is monitoring developments and is in contact with major producers and member states.
Like each of the other 31 members, as part of the IEA system New Zealand must maintain fuel stockholding equivalent to 90 days’ net import demand. When there are serious threats to the global oil supply, the IEA co-ordinates the release of these strategic reserves of oil and petroleum products to maintain global supply. We last saw this during Russia’s invasion of Ukraine in 2022.
Although the IEA has not yet decided to take collective action during this current conflict, this acts as an important insurance policy to keep New Zealand and the rest of the world moving.
At home, we no longer have functioning refinery infrastructure. Marsden Point, our only refinery, closed down in 2022 with the approval of the then-Labour government.
Channel Infrastructure operates at Marsden Point, which is now our largest import terminal. Marsden Point has over 290 million litres of storage capacity - that’s about the equivalent of 27 days worth of diesel, 35 days of petrol or 60 days worth of jet fuel depending on what is being stored - and two deep‑water jetties capable of receiving the world’s largest fuel vessels.
Fuel is also held in large quantities at Mount Maunganui, Wellington, Lyttelton and other terminals around the country.
The Government never wanted to be in a situation where we needed to put our plans into action, but they are built for times like this.