What specific actions, if any, did the Minister take within the first seven days after receiving advice from the Ministry of Business, Innovation and Employment that the closure of the Strait of Hormuz posed a material risk to New Zealand’s diesel supply? and 1 other question

Answer

Within the first seven days of receiving advice that the closure of the Strait of Hormuz posed a material risk to New Zealand’s diesel supply, I took a broad range of actions. I sought advice from officials on the impact of the closure of the Strait of Hormuz on New Zealand’s oil and refined fuel imports, including the risks to shipping routes and the potential duration of disruption. I asked officials to assess the impact of the closure on refineries in Asia from which New Zealand sources its refined fuels. This included information on the proportion of crude feedstock supplied to major refineries in Singapore, South Korea, Japan, and Malaysia, and the implications for refined fuel availability if those crude supply chains were disrupted. I requested advice on the wider economic implications of the conflict for New Zealand, including the potential impacts of diesel supply disruptions on freight, food production, construction, and other critical sectors. I sought updated information on New Zealand’s current fuel stock levels, including diesel, and how those stocks compared with minimum stockholding obligations. I asked officials to provide advice on New Zealand’s obligations and options under the International Energy Agency framework, including the use of oil tickets and participation in any potential collective action. I directed officials to convene the Fuel Sector Coordination Entity to engage with fuel importers and distributors, ensure visibility of fuel supply chains and shipping schedules, and test industry contingency planning. I sought advice on the National Fuel Plan and on the availability and use of relevant legislative tools, including the Petroleum Demand Restraint Act 1981, should fuel supply conditions deteriorate. I also asked officials to prepare advice and the latest information so I could update Cabinet colleagues through an oral item on the evolving situation, the risks to fuel supply, and potential response options.