Fuel volatility reinforces need for fuel security

Road freight association Transporting New Zealand is warning that continued volatility in the global fuel market highlights the importance of New Zealand having resilient fuel reserves in the event of supply disruptions.

“Diesel prices have risen over 50 cents per litre in the past month, back to over $3 a litre for the first time since early June,” says Transporting New Zealand Policy and Advocacy Advisor Mark Stockdale.

“We’re not out of the woods yet, with higher commodity prices reflecting continued tensions not only in the Middle East, but also Russia and Ukraine, where attacks on Russian refineries have halted exports of diesel from what was the world’s second biggest producer,” Stockdale adds.

Transporting New Zealand says diesel is the fuel of the economy, with approximately 93% of annual freight tonnage being moved by road.

“Whilst we have not seen a supply disruption yet, global diesel supply is constrained, and that is what is driving up prices. We can’t afford for fuel supplies to be cut due to an escalation in these conflicts, and that is why our election platform is calling for an increase in diesel reserves to 60 days’ supply,” Stockdale says.

This would double the current reserves, after the Government boosted onshore stocks from 21 to 30 days following the American attacks on Iran. Transporting New Zealand says doubling onshore diesel reserves could be achieved through establishing a Fuel Resilience Fund via a 1 cent per litre levy on fuels.

“Increasing domestic diesel reserves to two months’ supply will provide insurance that supermarkets are stocked, farms serviced, deliveries moving and exports flowing while any global disruption is resolved,” Stockdale says.

Transporting New Zealand’s election platform also calls for formal contingency agreements with refined-fuel suppliers such as South Korea. These would be similar to the recent Agreement on Trade in Essential Supplies with Singapore, which prevents either government from restricting exports of agreed essential goods, including fuel. Read our election platform here: https://www.transporting.nz/books/election-platform-2026/