The head of the country’s biggest fuel importer says supplies are flowing as normal and expected but the risks have increased, while there is no prospect of significantly lower prices.<\/p>\n
Z Energy’s chief executive Lindis Jones said New Zealand’s fuel supplies have been flowing normally and meeting local demand.<\/p>\n
“Supply remains secure, fuel is still moving, it’s just taking longer and is more expensive to move, so it’s just a story of price not supply security.”<\/p>\n
However, Jones said the risk margins for supplies have narrowed.<\/p>\n
“While system is coping the safety margins are thinner, so inventories are being drawn down, some refineries are deferring maintenance to keep operating and that reduces the market’s ability to absorb another disruption.”<\/p>\n
Jones was loath to predict prices other than to say a continuation of current conditions would underpin higher prices.<\/p>\n
He said prices were being driven by headlines and while that continued they would remain elevated.<\/p>\n
Jones said even after the end of the conflict prices would remain high until the global fuel market rebalanced.<\/p>\n
“It will take quite some time for the system to recover. Ships need to get into the right place, refineries need to do maintenance, products need to start flowing, and we’re still unclear about the level of damage to facilities in the Middle East.<\/p>\n
“This is a tough time for business and households in terms of elevated fuel prices and I believe it will be some time before prices return to normal.”<\/p>\n