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Option 1: Doing nothing beyond the current MSO settings

This is the status quo. Relying on the current minimum stockholding obligation settings for diesel will leave New Zealand with an average of 21 days’ cover, equivalent to 3 months’ supply for essential services with rationing. Fuel importers are unlikely to hold surplus stock beyond what is required for the MSO from 1 January 2025 because there is no commercial incentive to do so.

Minister’s foreword

Fuel security is a priority for this Government. We are acutely aware of how important engine fuels are to our economy and the impacts that a fuel disruption would have on New Zealanders. New Zealand imports nearly all of our engine fuels, making us particularly vulnerable to international and domestic supply disruptions.