Fuel crisis latest: Motorists hit as Infrastructure NZ defends government

The aviation fuel crisis is hitting motorists as Z Energy has confirmed it has limited supplies of 95 Octane and Infrastructure NZ is calling for a review of what caused the incident.

Z Energy has confirmed as at 5.30pm last night four Auckland stations had run out of 95 Octane, including Glen Park, Henderson Valley, Hunters Corner and Pukekohe, and said a few more may run out today.  The petrol firm says it made a decision to prioritise 95 and diesel fuels, given more than 90% of cars can run on 91 [UPDATE: one in five Z stations are now hit by shortages]

A spokesperson told NBR ONLINE fuel prices would not be influenced by the ruptured pipeline between Marsden Point and Wiri storage facility, which has disrupted flights in and out of Auckland as airlines ration their supplies.

Meanwhile, Infrastructure NZ chief executive Stephen Selwood says there has been a lack of industry leadership on this issue, and the government should not be blamed. Opposition parties were quick yesterday to suggest the government did not provide security for supply.

However, Mr Selwood says it’s not fair for anyone to point the finger. "It’s a New Zealand Inc failure and the industry has to take a fair share of the responsibility. The airlines should be putting pressure on their suppliers.”

“We need a review on how the pipe was accessed without appropriate oversights and whether appropriate permissions and consents given. We need to check on inspections of the pipeline corridor. It seems this leak was going on for some time.”

Mr Selwood says, even with a new plan B, he expected there would be ruptures in the future so the industry needed to think about how it would respond.

“Increasingly, technology is moving forward and toward underground digital mapping of infrastructure and utilities and that is good but it depends on people following the rules. New Zealand is not unique in having these issues.”

The Ministry of Business says an alternative to the Wiri oil terminal, estimated at $57 million, was too expensive and wouldn't have avoided the recent pipeline leak disrupting air services in Auckland because the leak was too close to the refinery. 

Refining NZ put a $222 million cost of the refinery to Auckland pipeline in its 2016 annual report and, after accumulated depreciation, the net value was $112.7 million at December. 31. 

Energy Minister Judith Collins yesterday called in the Defence Force, with the HMNZS Endeavour naval tanker charged with helping shift diesel from the refinery to other parts of the country and providing up to 20 tanker drivers to manage the increased workload of taking fuel by road to Auckland. She also said the government is looking at providing greater regulatory flexibility for working hours and weight loads for the tankers. 

Mobil Oil New Zealand manager Andrew McNaught, who is representing the transport fuels companies, said the industry is bolstering trucking resources to deliver petrol and diesel into Auckland from other locations, such as Mount Maunganui and Whangarei, and that two dedicated shipping vessels have full delivery programmes. 

The fuel companies continue to work together to try to find industry solutions to the pipeline outage for our customers," Mr McNaught said. "We continue to liaise constructively with the government, including over some road transport solutions that might further make the supply of fuel into Auckland more efficient." 

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