Shane Jones: Associate Energy Minister on the update to the Government's fuel response plan, concerns about supply

Shane Jones says while Kiwis may be concerned about fuel prices, they don't need to worry about fuel supply. 

The Government's updated its fuel response plan, so fuel is only restricted under phase four. 

At that phase, emergency services, health services, schools and courts would get uncapped priority access, while others would need to limit their fuel use. 

The Associate Energy Minster told Mike Hosking that at this stage, there is bugger all to worry about beyond price. 

However, he says the Government wanted to show businesses and other stakeholders that it was being proactive. 

“In the event we do strike a dangerous patch, then we've got additional fuel [at Marsden Point] that can be made available on a staggered managed basis. So it gives the confidence to the lifeline of the economy, the users of diesel, that it's actually here.” 

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Episode Transcript

Speaker 1 (00:00):
And we got yesterday the government plan will likely never use.
It's the reshaped Phase four or four phase plan. The
thinking of it all goes pear shaped in a run
and we run out of petrol. Basically. Shane Jones as
the Associate Minister for Energy and he's back with us morning.

Speaker 2 (00:14):
Yeah, good a morning.

Speaker 1 (00:15):
I would be surprised if we ever get out of
Phase one. Is that fair or not?

Speaker 2 (00:20):
Yeah. Look, it's a very very dim prospect and low
possibility that we're ever going to get into Phase four.
The PM recently came back from Singapore. You can see
that there's a strong prospect that they'll work with us
to avoid their possibility. Of course, we've got Labor and
the various other benches on the other side of the
house trying to catastrophize it. But we wanted to show

(00:41):
to the business and various other stakeholders that we've been proactive.

Speaker 1 (00:45):
Okay, the role of what you also announced which largely
got forgotten yesterday, that deal with Marsden and the storage
of the diesel that's real, that's go. What sort of
difference will that make.

Speaker 2 (00:55):
Will in the event we do strike a dangerous patch.
Then we've got additional fuel in country that can be
made available on a staggered managed basis. So it gives
the confidence to the lifeline of the economy the users
of diesel that it's actually here. But look, I have
to stress, at no point have we ever been told

(01:17):
by the importers that they're going to violate their statutory obligations,
that they are struggling to bring fuel to New Zealand.
They do remind us that the price is likely to climb,
but we have a good reputation of paying our bills internationally.

Speaker 1 (01:35):
So what we've worked out out of this so far
is that the world has readjusted itself in terms of supply.
They've gone to other places. They've got it. The problem
to it, agree not ideal, is solved, isn't it.

Speaker 2 (01:48):
We chew through about fifty eight million barrels of oil
per year up in the refineries they create about six
million barrels or the bit of degradation per day. Mate,
we're between ten and fourteen days worth of supply in
terms of the capacity of the refineries that deal with

(02:10):
the KIWIS. So yes, there will be the shrill voices
people demanding that we reprise and duplicate the recklessness of COVID.
We're never ever going to do that. We're not going
to move people around. We're not going to blink downtown
Auckland with these COVID refugees that never ever move, just
because people are worried about fuel security, when there is

(02:31):
really at this stage other than price bugger or to
worry about.

Speaker 1 (02:35):
Well, so appreciate it. Shane joins Associate Minister of Energy.
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