What alternative fuel supply routes or supplier agreements, if any, are in place if the Strait of Hormuz route is compromised?

Answer

New Zealand has five fuel importers who import majority of refined fuel from Asia, with over 90 per cent of petrol, diesel, and jet fuel sourced from refineries in the region. While many Asian refineries source a significant share of their crude oil from the Middle East, including via the Strait of Hormuz, those refineries are now securing crude from other regions, and global crude supply is being rebalanced in response to disruptions. The impacts of disruption in the Strait of Hormuz are primarily felt through global market conditions, rather than through direct interruption of fuel shipments to New Zealand. The Government is a member of the International Energy Agency, which acts as “insurance” against disruption to international energy supplies. New Zealand benefits from established trade relationships with key refining economies such as South Korea and Singapore. These arrangements support market continuity during disruptions by maintaining access to diversified sources of supply.