Fuel stocks rise with more than 50 days currently in stock, including diesel

Fuel stocks have risen since the Government’s last update, with data showing New Zealand has over 50 days’ worth of fuel remaining in each of the three major fuel types as of midnight last Wednesday.

The increase is likely to come from a significant offloading of fuel in the country last week. The Ministry of Business, Innovation and Employment (MBIE), the department in charge of the data, said the movement in fuel stocks was “within expectation”.

New Zealand has 21.7 days of diesel in the country as of midnight Wednesday, up from 18.1 days, which was the level of stock for midnight the Sunday prior, the last update.

There is 27.9 days’ petrol, up from 24.5 days and 25.3 days jet fuel up from 20.1 days.

Total stocks, which include orders on the water and up to three weeks away from delivery, are 59.3 days’ petrol, 54.5 days diesel, and 50.4 days jet fuel.

“Fuel stocks naturally rise and fall each week as fuel is used and new shipments arrive. Current fuel levels are broadly in line with normal levels before recent global disruptions, and fuel supply remains normal,” an MBIE release said.

“There is currently no indication of fuel supply disruption, and fuel continues to flow normally into New Zealand,” the department said.

It was forced to clarify its numbers last week after it did not count ships currently unloading fuel in New Zealand, causing commentators to forecast an immense diesel crunch by Easter.

Revised data, published on Thursday morning, showed this was not the case.

Last week, the Government unveiled a four-step fuel plan that would restrict the use of different fuels as they became more scarce.

New Zealand is at Phase 1 of the plan for all fuels, but some commentators have urged the Government to move sooner.

Westpac chief economist Kelly Eckhold told RNZ’s Morning Report it would be wise to start prioritising diesel supplies.

“Diesel that we burn now could be diesel that we need in three or four weeks.

“You can get on the bus, you can drive your EV to work, but in the end, if we want a farmer to be getting our food off the land, then he needs that diesel,” he said.

He noted that the alternative route that some oil imports had been taking could be cut off at any time, particularly given news over the weekend that Iran-backed Houthi militias have entered the war.

“Perhaps about a third of the losses are currently being made up by utilising those pipelines. Obviously, it probably only takes one of those tankers to get blown up in the Red Sea before that route would be choked off.”