Air New Zealand expecting full-year loss of nearly $400m due to jet fuel costs
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New Zealand's fuel stock levels showed further changes in the latest Ministry of Business, Innovation, and Employment update, with petrol reserves climbing significantly to 59 days of cover from the previously reported 51 days. This marked the second consecutive increase for petrol stocks, which had risen from 49.4 days in early May. Diesel supplies also recovered, increasing to 45.2 days from 44.3 days, reversing the previous decline from 47.7 days.
Jet fuel stocks continued their downward trend, falling nearly four days to 50.2 days of coverage from 54.1 days, extending the decline from 55.1 days recorded in early May. The persistent drop in jet fuel reserves comes as Air New Zealand announced it expects a full-year loss of nearly $400 million due to elevated jet fuel costs, prompting the national carrier to review cost-cutting measures and capital expenditure plans. MBIE maintained that fuel importers have provided strong confidence through confirmed orders extending to late June, with planned orders reaching into early August, and that all stock levels remain well above minimum requirements despite the ongoing fluctuations.
New Zealand's fuel stock levels showed mixed movements in the latest update from the Ministry of Business, Innovation, and Employment, with petrol reserves increasing while diesel and jet fuel supplies dipped slightly. Total petrol stocks rose to 51.0 days of cover from 49.4 days in the previous update, while diesel stocks fell from 47.7 days to 44.3 days and jet fuel decreased marginally from 55.1 days to 54.1 days.
MBIE officials emphasised that these fluctuations represent normal shipping patterns and routine variations, consistent with expected movements even without Middle East tensions affecting global fuel markets. The ministry noted that stock movements followed recent fuel shipment arrivals and that levels are now beginning to be drawn down as expected. In-country fuel holdings showed decreases across all categories, with 32.0 days of petrol, 23.5 days of diesel, and 31.8 days of jet fuel currently held within New Zealand's borders.
The country's fuel supply pipeline remains robust, with eleven ships contributing to reserves including three vessels within New Zealand's exclusive economic zone and eight more en route. These incoming shipments are expected to boost fuel reserves over the coming weeks, with further planned arrivals ensuring regular supply continuity despite ongoing global uncertainties.
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Source Coverage
Air New Zealand expecting full-year loss of nearly $400m due to jet fuel costs
Air New Zealand said it was looking at cost-cutting and reviewing capital expenditure plans.
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Energy update: NZ's petrol and diesel stocks up, jet fuel down
Ministry says the supply chain is "operating smoothly, and fuel is continuing to flow into the country as expected".
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Petrol up, diesel and jet fuel down in latest NZ stocks update
An MBIE spokesperson said the data movements were expected following recent fuel shipment arrivals, with stocks levels now beginning to be drawn down.
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