New Zealand stopped refining its own fuel in 2022, when the Marsden Point refinery in Northland was converted into an import-only terminal. The country now relies entirely on refined petrol, diesel and jet fuel shipped in from overseas — a dependence thrown into sharp relief by the 2026 Middle East crisis, which sent prices surging and pushed the government into emergency fuel planning. Whether closing Marsden Point left New Zealand dangerously exposed, and whether anything can or should be done about it, has become one of the most charged energy debates of this parliamentary term.

What's happening:

• After 58 years of operation, Refining NZ shareholders voted in August 2021 (about 99% in favour) to stop refining. The site switched to an import-only terminal from April 2022 and the company was renamed Channel Infrastructure. Staff numbers fell from roughly 300 toward about 70.
• New Zealand now imports effectively all of its refined fuel, with around 85% coming from Asian refineries — four of every five litres from South Korea or Singapore — and an estimated 60% of supply historically transiting the Strait of Hormuz.
• Since 2023, importers face a minimum stockholding obligation: 28 days of petrol, 21 days of diesel and 24 days of jet fuel held within the Exclusive Economic Zone.
• A 2024 government fuel security study examined reopening the refinery. It concluded rebuilding would cost roughly $4.9–$7.3 billion and deliver limited security gains, since a single domestic plant can itself be knocked out by outages or disasters.
• The 2026 Strait of Hormuz disruption pushed pump prices up sharply — petrol by roughly 35% and diesel by more than 87% — and triggered the government's phased National Fuel Response Plan, with pump limits and spot checks reserved for the most severe phase.

Where the parties stand:

• NZ First is the strongest advocate for restoring domestic capability. Associate Energy Minister Shane Jones says closure "fatally wounded" fuel security and pushed the reopening study through the coalition agreement, though he later admitted the Crown cannot afford a rebuild — calling the cost "a stupendous amount of money" — and now backs a special economic zone for biofuels and extra diesel storage. Leader Winston Peters has gone further, suggesting the plant was effectively shut down with official "connivance". NZ First's broader energy stance also covers withdrawing from the Paris agreement and breaking up the big energy companies.
• ACT disagrees within the coalition. Leader David Seymour calls reopening economically unfeasible, noting closure was a commercial shareholder decision and that the case "doesn't actually stack up".
• Labour's former Energy Minister Megan Woods, who oversaw the closure period, rejects the idea it harmed security, arguing NZ never refined its own crude — the plant processed imported Middle Eastern crude — so the country was import-dependent either way.
• Greens emphasise demand-side resilience consistent with their 100% renewable electricity goal, pointing to faster EV uptake as the most durable hedge.
• Independent fuel consultant Andreas Heuser assessed reopening as "the most costly option" with "relatively small" benefits versus more storage or electrification. Industry voices including Channel Infrastructure chair James Miller and National Road Carriers' James Smith back a Marsden Point energy precinct.

What to watch:

• Whether the government's $21.6 million deal to convert tanks into about 90 million litres (roughly eight days) of diesel storage proceeds on schedule.
• How long the 2026 Hormuz-driven price shock and phased response plan persist, and whether stocks stay above minimum obligations.
• Progress on Jones's proposed special economic zone for biofuels and sustainable aviation fuel at the former refinery site.
• Whether future studies revisit reopening if global refining margins or geopolitics shift.

Neutrality note: positions here are attributed to named parties and officials; this entry does not endorse any view on whether closure was a mistake.