Currently, around 51% of the fuel New Zealand imports comes from South Korea and 31% from Singapore.<\/p>\n
Conflict in the Middle East has not disrupted the supply of fuel into New Zealand. Rather, uncertainty and the partial closure of the Strait of Hormuz (where a lot of oil is transported through) has hiked the price.<\/p>\n
Asked by the Herald whether fuel importers had asked the Government to publicly give them the thumbs up to buy fuel with Russian origins, Resources Minister Shane Jones didn\u2019t answer the question, but highlighted the fact New Zealand wouldn\u2019t consider fuel to be \u201cRussian\u201d if it was refined elsewhere.<\/p>\n
\u201cAs the Prime Minister has said, it\u2019s product that\u2019s coming from a refinery, but it\u2019s not Russian,\u201d Jones said.<\/p>\n
Put to him and Finance Minister Nicola Willis that fuel importers, like Z Energy, Mobil and BP, may receive public backlash for effectively helping fund Russia\u2019s invasion of Ukraine if they imported fuel with Russian origins, Willis said: \u201cThat\u2019s a judgment for the fuel companies.<\/p>\n
\u201cBut I think many New Zealanders want to make sure that they can still fill up their bulldozer and fill up their ute.\u201d<\/p>\n
Z Energy said the company bought fuel from a range of markets, primarily in Asia, but was continually reviewing \u201csourcing options\u201d as a part of its \u201cstandard supply\u2011chain management\u201d.<\/p>\n
\u201cAt this stage, Z Energy is able to continue supplying fuel to our customers. However, global energy markets remain highly volatile and, if the situation in the Middle East remains unresolved, further pressure on global fuel supply chains is possible,\u201d the company said. <\/p>\n
\u201cWe are committed to complying with all New\u202fZealand laws and sanctions, supported by robust due diligence and ongoing engagement with regulators. Our priority remains maintaining fuel supply for New\u202fZealand customers in a changing global environment.\u201d<\/p>\n
Starboard marine intelligence analyst Mark Douglas noted it would be easier for New Zealand to import fuel from India or China than the United States or Europe, due to proximity.<\/p>\n
He made the point it could be difficult to know the origins of fuel, as refineries mix crude from several sources together. <\/p>\n
These mixes could even include Iranian oil, which wouldn\u2019t be a problem under the United Nations Security Council sanctions against Iran that New Zealand implements.<\/p>\n
According to Reuters, India is gearing up to once again import large quantities of crude oil from Russia. <\/p>\n
India curtailed its Russian imports earlier in the year after it came under pressure from the US, which was unhappy with it effectively supporting the Kremlin by buying up a lot of discounted Russian oil.<\/p>\n
While diplomatic talks are reportedly underway between India and Russia, Prime Minister Christopher Luxon has been speaking to his counterparts in South Korea and Singapore in a bid to ensure they keep supplying New Zealand with fuel. <\/p>\n
Luxon said refineries were hustling to source enough crude.<\/p>\n
He pointed to the New Zealand-Singapore Comprehensive Strategic Partnership, signed in October, as well as the Agreement on Trade in Essential Supplies, which New Zealand has with Singapore to help keep essential goods moving in times of crisis.<\/p>\n
Last week, the Government announced it was also loosening its rules around the types of fuel that could be imported into New Zealand to ensure these weren\u2019t impeding the country\u2019s access to fuel. <\/p>\n
The specifications are temporarily being aligned with that of Australia<\/a>, so the countries can work more closely together on fuel security. <\/p>\n Jen\u00e9e Tibshraeny is the Herald\u2019s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.<\/p>\n