New Zealand to Release Fuel Reserves Equivalent to Six Days' Supply Under IEA Coordinated Action

Wellington – The New Zealand Government announced on Thursday 12 March that it will release fuel supplies equivalent to approximately six days as part of a coordinated measure by the International Energy Agency (IEA).

The IEA has decided to release 400 million barrels of crude oil from global reserves in an effort to suppress price increases triggered by conflict in the Middle East.

Senior ministers convened a meeting on Wednesday 11 March evening local time to review fuel supplies and New Zealand’s supply chain as part of the Government’s response. This was the first session of the newly established Economic Security and Supply Chain Ministers’ Group, formed to coordinate cross-agency planning regarding energy security and trade.

Shane Jones, New Zealand’s Deputy Energy Minister, stated that his country, as an IEA member, has an obligation to contribute to the release of strategic reserves.

“New Zealand’s contribution is equivalent to fuel supplies for approximately six days in the country. The contribution can be accomplished through measures such as terminating its reserve contracts (tickets) so that the oil can be made available on the market,” Jones explained in a press statement.

He clarified that IEA members are required to maintain oil reserves for 90 days, and New Zealand fulfils part of its reserves through oil purchase contracts (oil tickets).

“The Government will ensure that the impact on New Zealand citizens is minimised,” Jones added, describing the contribution as “a small yet significant effort” to stabilise the global market.

Fuel companies in New Zealand reported no significant supply chain constraints and that fuel inventory levels remained strong, according to the ministers’ meeting.