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Summarised by Centrist
Prime Minister Christopher Luxon has signed New Zealand’s “fuel-for-food” agreement with Singapore as new MBIE data shows diesel and jet fuel stocks have risen sharply.
The deal prevents either government from imposing export restrictions on agreed essential goods, including fuel, food, construction materials and medicines.
Luxon said the agreement turns “long-standing trust” into “practical action” at a time of global instability.
“With a third of New Zealand’s fuel refined in Singapore, this agreement turns trust into action, and right now, that’s keeping fuel flowing to New Zealand when it matters most,” he said.
Singapore Prime Minister Lawrence Wong said the agreement showed trusted partners would not “shut each other out” during shortages.
MBIE’s latest figures show diesel stocks rose from 46 to 52 days’ cover and jet fuel from 49 to 58 days’ cover in the week ending April 29. Petrol was largely unchanged at about 53 days’ cover.
The ministry said the increase came from several large shipments heading to New Zealand, and there was “currently no need for New Zealanders to change how they buy fuel”.
Luxon and Willis said Singapore’s major energy companies told them supply can still meet demand, with no current risk to New Zealand over the next few months.
Wong warned disruption through the Strait of Hormuz could last “at least to the end of the year, perhaps even beyond”, while Luxon said even a resolution today would leave “at least six months of bumpiness” in supply chains.
ExportNZ’s Joshua Tan said the deal was not a “silver bullet”, but it should reduce the risk of essential goods being caught behind export restrictions in a crisis.
TVNZ’s Maiki Sherman was not on the Singapore trip because of her five-day suspension.
