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Status quo

On a day-to-day basis, New Zealand’s diesel supply is resilient. Diesel arrives on most fuel shipments into New Zealand. There is also more flexibility to relax standards for diesel quality compared to other fuels, so shipments into other countries can be more easily diverted to New Zealand in the case of a domestic shortage.

Option 4: Increase the stockholding obligation for diesel as in Option 2 but the government supports new additional storage

As with Option 2, under this option the MSO would increase to 28 days.

Option 2: Increase the stockholding obligation for diesel from 21 days’ cover to 28 days’ cover

The MSO will require fuel importers to hold, on average, 21 days’ cover of diesel from 1 January 2025.

Option 3: Government procurement of 70 million litres of diesel (equal to 28 days’ cover)

This option would involve the government entering into a long-term lease agreement for new diesel storage capacity and procuring up to 70 million litres of onshore reserve diesel stocks.