The Government’s newly established Ministerial Economic Security and Supply Chains Group met for the first time last night to discuss potential next steps on fuel security in response to the Middle East conflict.
The group of senior ministers has been convened to provide strategic oversight and co-ordinated leadership to agencies to ensure a quick and effective response to any potential disruptions to petrol, diesel, and jet fuel supplies, as well as other key supply chains.
The meeting brought together ministers responsible for energy, transport, trade, economic security and internal affairs, as well as well as agency chief executives.
“This group has been established with the purpose of strengthening whole-of-government co-ordination and providing clear direction during this period of heightened risk resulting from the Middle East conflict,” said Minister for Finance and Economic Growth, Nicola Willis.
“I have made the Government’s expectations to agencies very clear. This is a fast-moving situation and New Zealand needs to be prepared for all scenarios. Whether or not they come to pass, our economy depends on ministers having full, accurate facts in order to make significant decisions, if necessary.
“Having said this, I want to emphasise that New Zealand remains in a healthy position. We are actively monitoring domestic and international fuel supply conditions and assessing any impacts on New Zealand’s energy security.
“But the importance of fuel and the risk disruptions in supply can cause mean we need to be decisive, which is why we are are bringing together oversight of cross-agency planning and preparedness, ensuring government agencies and the fuel sector are aligned in our response options.
“Our role as a ministerial group is to provide strategic direction during any potential disruptions, enabling swift, evidence-based decisions to protect essential services, support industry, and maintain public confidence.”
As Associate Minister for Energy, Minister Shane Jones is responsible for fuel security. At last night’s meeting, ministers were briefed on a decision made to support the recommendation of the International Energy Agency (IEA) to release oil reserves.
New Zealand is a member of the IEA, along with 31 other countries, and is obliged to contribute to this release of strategic reserve, which is intended to bring down the price of oil globally and stabilise the market.
Members of the IEA are required to hold 90 days of oil stocks. New Zealand holds its stocks, in part, through oil tickets or contracts.
“New Zealand’s contribution is equivalent to about six days’ fuel supply here. It can make that contribution through measures such as terminating its tickets to make the oil available to the market.”
“We have not yet determined how we will do this but the Government will ensure that the impact on Kiwis is minimised. 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,” Mr Jones says.
At last night’s meeting, ministers were advised that fuel companies in New Zealand are reporting no significant supply chain issues and that fuel stock levels, both onshore and in transit to New Zealand, remain strong.
“By establishing this ministerial group, the Government is taking proactive steps to safeguard fuel supplies, support economic continuity, and enhance New Zealand’s resilience in the face of global volatility,” Mr Jones says
“New Zealanders should be reassured that we are monitoring this very, very closely. When we receive information, we will share that information. If circumstances change, we will swiftly notify the public. There is no need for panic or over-reaction.”
MBIE’s latest update on fuel stocks can be found here: Middle East conflict and New Zealand’s fuel stocks | Ministry of Business, Innovation & Employment.
