April 02, 2026 [Reuters]- New Zealand’s government said on Thursday it would commit NZ$21.6 million ($12.42 million) ​to the rapid expansion of diesel storage at ‌Marsden Point in the country’s North Island as it works to shield the country from fuel supply disruptions linked to the Iran ​war.

The statement said the funding will support facility ​owner Channel Infrastructure NZ  to increase diesel storage ⁠by roughly 90 million litres. Channel Infrastructure currently has ​290 million litres of storage in service and a further ​350 million litres of available storage in tanks, according to the company.

Regional Development and Associate Energy Minister Shane Jones said in ​a statement the added diesel capacity, equivalent to about ​eight days of supply, would help New Zealand respond if opportunities arose ‌to ⁠secure diesel beyond volumes already expected.

“While we are acutely aware of the importance of petrol and jet fuel, it is diesel that is the lifeblood of our ​economy,” Jones said.

Channel ​Infrastructure, which ⁠owns and operates the Marsden Point import terminal, said it was working to bring ​on the storage in approximately two months.

Jones added ​New ⁠Zealand had secure diesel supply until the end of May, but warned storage capacity remained a constraint because much ⁠of ​the infrastructure at Marsden Point had ​been idle for years.